Banking crisis in Sweden and Denmark and governmental interventions

Abstract: Crisis in the financial sector have come to be a natural part of the economic cycles, as well as the compulsory regulatory measures that follow. These processes have been documented since the beginning of financial revolutions where the states and financial institutions are intertwined in an eternal dance ever since. Both external chocks and internal innovations can spark booms or busts. But how much should the governments be involved in the private sector and who benefits from the regulations? At least one theory, The Theory of Economic Regulation, is sceptic of a wider public having interest in these regulations. The reasoning being that only larger companies start the process of regulatory frameworks, all in their own interest. Au contraire points other researches to, meaning that these regulations have always been in the interest of the general public and are essential as shock-absorbers in the volatile modern economies. Two highly comparable Nordic countries of Sweden and Denmark, with independent histories of market economy come under the investigation. Material comes from empirical data and evidence in a multiple case study from nineteenth, twentieth and twenty-first centuries. Despite a varied degree of political involvement seen in these cases, the measures taken are very similar and with comparable end results.