Published 25 March 2023 at 11.32
Economy. With a 225 square meter apartment for 30 million kroner in Östermalm in Stockholm, former finance minister Anders Borg (M) is one of those who stand to lose the most from an increase in the policy rate. At the same time, he acts as an independent expert on interest rates in Svenska Dagbladet, where he states that inflation will soon pass by itself and that it is therefore unnecessary for the Riksbank to raise interest rates.
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Anders Borg speaks out in an interview with journalist Lotta Dinkelspiel, who is Borg's neighbor in Östermalm and who herself has an apartment in Karlaplan valued at SEK 29 million.
In his article, Dinkelspiel chooses to highlight Borg as an expert on inflation and macroeconomics despite the fact that he has no academic degree at all. Neither the writer's nor the politician's multi-million apartments in Östermalm are mentioned in the article.
On the other hand, Dinkelspiel highlights Borg's expert analysis – which states that inflation is a myth and that the interest rate does not need to be raised – in a leading position. According to Borg, the price increases in Sweden are a transient phenomenon that will disappear by itself – already before the new year.
– That we would have inflation next year in Sweden, when we have negative growth, moderate wage increases and unemployment that is likely to move upwards, it is not likely, Borg tells SvD.
If the Riksbank raises the policy rate in April it should be by a maximum of 25 points and after that the interest rate should not be raised at all, Anders Borg further asserts, without receiving a single critical counter-question in the interview.
Dinkelspiel instead highlights the importance of rescuing banks from the negative consequences that will be the case of a rising interest rate, and threatens with grim consequences if the Riksbank does not heed Borg's advice.
“Bank shares throughout Europe fell on Friday, since the world's central banks failed to dispel concerns in the financial sector” , the article says, among other things.
Anders Borg emphasizes that it is not all about fighting inflation, but also about fighting what can threaten the banks.
– One must attach very great importance in avoiding a financial crisis. It has major damaging effects on both the economic and the political system, says Borg to SvD.