Here’s BloombergBusinessweek, with a picture for those too lazy to read:
They are taking to the streets in Stockholm, but not with demands. Swedes, this month, ask for no more than a spare patch of grass or dockside granite to bask in the midsummer. The country has never really gone in for protest anyway, and right now there’s nothing to protest about. The economy grew at an annual rate of 6.4 percent in the first quarter, after 5.7 percent last year, which was the strongest recovery in the European Union. And Sweden still has its krona.
Australia is another success story. It maintained a higher trend NGDP growth rate than other countries during the pre-crisis period, which meant higher trend nominal interest rates. During the crisis it was able to cut rates from 7% to 3%, and avoid a liquidity trap. No PSST problem in Australia either. Ditto for Poland. Interesting that countries that avoid PSST problems are pretty much the same as countries that avoid excessively tight money.