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Sweden - a self-financing state


The Swedish state's money comes from the Swedish state.
The Swedish state's money comes from the Swedish state.

Our report on the functioning of Swedish government spending is now available in English


When the Swedish state makes payments it creates the funds that are used by the private sector to pay taxes and buy government bonds.


In other words:

● Sweden is a self-financing state.

● Taxes do not finance the Swedish state.

● The Swedish state does not borrow Swedish kronor (the national currency) from the private sector.


A recent report from MMT for Sweden (MMT för Sverige) shows this by expanding on the description by FSPOS (the Financial Sector's Private-Public Cooperation forum) in their report “Swedish Payment Flows – How they work” of how payments to and from the state actually are performed.


The report also makes reference to Swedish law, as well as to publications and web pages of Riksbanken (the Swedish central bank), the national Debt Office (Riksgäldskontoret) and the Financial Management Authority (Ekonomistyrningsverket).


Together these sources clearly show that state spending creates money, that taxes do not finance the state, and that the state does not borrow Swedish kronor from the private sector.

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The report was released in Swedish in October 2024. An English translation has now been made which can be found here. The Swedish original can be found here.


Authors of the report are Erik Arnell and Johannes Borgström, both active members of MMT for Sweden.


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