It’s been a rough seven years or so for the euro (EUR). Since the end of 2012, EUR has fallen 17% versus the US dollar (USD). As bad as that is, it’s much better than the Swedish krona (SEK), which, over the same period, slid 21% versus EUR and 34% versus USD. SEK hasn’t traded this low versus EUR since the depths of the financial crisis in early 2009 (Figure 1). Currently, SEKEUR is about 15% below its average level of the past two decades since EUR came into existence. Superficially, Sweden’s economy looks similar to that of the eurozone. Both the Riksbank and the European Central Bank (ECB) had dabbled with ... (full story)