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Has Quantitative Easing Affected Debt? A Comparative Study Between Sweden and the Euro area

Gunnarsson, Axel LU and Mosleh, Salma LU (2025) NEKH03 20242
Department of Economics
Abstract
This paper explores the impact of quantitative easing on debt in Sweden and the Euro area. The study examines the debt levels of both households and non-financial corporations and compares the results between Sweden and the Euro area. Using the historical balance sheets of the Riksbank and the European Central Bank, three hypotheses are tested using OLS time series regressions. The first hypothesis investigates the relationship between debt levels and quantitative easing for households, while the second hypothesis examines the relationship between quantitative easing and the debt levels of non-financial corporations. The third hypothesis compares quantitative easing effects between Sweden and the Euro area. The results indicate that... (More)
This paper explores the impact of quantitative easing on debt in Sweden and the Euro area. The study examines the debt levels of both households and non-financial corporations and compares the results between Sweden and the Euro area. Using the historical balance sheets of the Riksbank and the European Central Bank, three hypotheses are tested using OLS time series regressions. The first hypothesis investigates the relationship between debt levels and quantitative easing for households, while the second hypothesis examines the relationship between quantitative easing and the debt levels of non-financial corporations. The third hypothesis compares quantitative easing effects between Sweden and the Euro area. The results indicate that quantitative easing led to higher debt levels for Swedish households, while the effects were more ambiguous for households in the Euro area. The results regarding corporations were inconclusive due to poor model fit. Further research is needed to understand the relationship between quantitative easing and debt. (Less)
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author
Gunnarsson, Axel LU and Mosleh, Salma LU
supervisor
organization
course
NEKH03 20242
year
type
M2 - Bachelor Degree
subject
keywords
Quantitative easing, Household debt, non-financial corporation debt, Euro area, Sweden
language
English
id
9184176
date added to LUP
2025-05-16 10:51:05
date last changed
2025-05-16 10:51:05
@misc{9184176,
  abstract     = {{This paper explores the impact of quantitative easing on debt in Sweden and the Euro area. The study examines the debt levels of both households and non-financial corporations and compares the results between Sweden and the Euro area. Using the historical balance sheets of the Riksbank and the European Central Bank, three hypotheses are tested using OLS time series regressions. The first hypothesis investigates the relationship between debt levels and quantitative easing for households, while the second hypothesis examines the relationship between quantitative easing and the debt levels of non-financial corporations. The third hypothesis compares quantitative easing effects between Sweden and the Euro area. The results indicate that quantitative easing led to higher debt levels for Swedish households, while the effects were more ambiguous for households in the Euro area. The results regarding corporations were inconclusive due to poor model fit. Further research is needed to understand the relationship between quantitative easing and debt.}},
  author       = {{Gunnarsson, Axel and Mosleh, Salma}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Has Quantitative Easing Affected Debt? A Comparative Study Between Sweden and the Euro area}},
  year         = {{2025}},
}