Food was never this expensive!
Holland, Sweden, Dutch And Swedish Media
The inflation in Holland is much lower: 2,6 percent, according to recent numbers from the Dutch central bureau for statistics. That is just a rise of 1,1 percent since june last year.
Dutch And Swedish Media
Where does this big difference come from? Where did it go wrong in Sweden?
Well, first of all, Swedish companies have tighter connections with the US dollar, like our banks for instance. So from the moment Sweden heard that the house prices in America were dropping, and that Americans couldn't handle their three mortgages per person, Swedes started panicking.
Many Swedish pensions and many mortgages are arranged by banks that either are part-American or have strong connections with for instance CitiGroup. It doesn't help that the biggest business website of the Nordic countries have a headline every single day that Sweden is headed for doom. At this moment one of their most clever stockmarket-analysists claims that the Swedish stockmarket will crash soon. And then we haven't even mentioned the way they report on the skyrocketing oil-prices.
The Dutch media have given the American crisis and the oil-prices alot of attention as well. But when I look at the headlines of different media during the last few months, the overall image is that the Dutch media don't express doom scenarios. At least not as much as the Swedish media.
De Financiele Telegraaf, one of the most respected financial media in Holland, did state on the 9th of june that the "unexpectedly high inflation in the world is very dangerous for the world economy". They quote the head of the IMF, Dominique Strauss-Kahn, who said this during the G8 summit.
Could one of the resons of the better statistics be, that the Dutch media keep their heads cool?