Former Finance Minister Anders Borg.
According to former Finance Minister Anders Borg is no doubt about it – we will get an asset price bubble, and it bursts within a few years.
Anders Borg believes that the low interest rates in several countries, including Sweden, is an” experiment “is going on and that the world did not have a clue what it means.
– There is a very great risk that money starts chasing assets, and that we have an asset-price inflation, he says to the business world.
The problem is, however, to solve the macro instruments, says Anders Borg. It will be achieved by having more capital in banks, raising the repayment requirement and lowering the interest deduction.
According to Anders Borg, we are build up a substantial asset price bubble.
– One should never underestimate how long an imbalance can be built up and you should never underestimate how quickly the then pulled together, said Anders Borg.
He believes that we are in the early stages of the global recovery. He therefore believe that we are likely to see at least one to two years of decent growth going forward – but will ultimately asset price bubble to burst.
– All these kinds of bangs come in any area where they had not expected. And it will certainly not where it hit last time.
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