The form of government was unstable, the payment system was rather chaotic and there was a general shortage of credit facilities. People who wanted to try something new found themselves restricted. Many saw no alternative to emigrating and trying their luck in America. It seems that more than a million people left Sweden for the new country in the west before the process of industrialisation began in earnest here. Less than a hundred years later, at the end of the 19th century, the Swedish economy had undergone a dramatic transformation. Inflation was low and the payment system functioned properly. The country vibrated with energy in every sphere. An impressive number of new products were developed on the basis of Swedish inventions and many of them became world leaders. Swedish financial experts were involved early on in exploiting the innovations. More and more people found work, living standards rose and Sweden achieved one of the highest growth rates in the world. When it comes to the causes of Sweden’s rapid economic transformation, there are some differences of opinion. The industrialisation taking place elsewhere was probably a major factor. Another was the possibility of importing capital for large investments. Domestic reforms in key areas may also have helped create the conditions for growth. Price stability was presumably of some significance. Low, stable inflation reduces uncertainty about the future for those who have to plan for the long term.
For these highly leveraged households, reducing the level of leverage will take time. They need to work with their banks and commit to debt repayment plans. 30 Hence on the whole, MAS’ assessment is that it is premature to ease property cooling measures now. It is important that we secure the gains we have made in stabilising the market and restoring financial prudence. Comprehensive measures to safeguard interests of consumers of financial products 31 On the financial regulatory and supervisory front, I will focus on measures being taken to safeguard the interests of consumers of financial products. 32 Several measures were announced recently and some will be announced soon. Let me set the context for these measures – motivating factors, overall approach, and how the various pieces fit together. 33 Three trends are shaping market for financial products. •  Low interest rates globally have spurred investors to seek better returns. •  Growing affluence and financial awareness have generated greater demand for a broader range of retail investment products. •  There has been an increased sophistication and variety in financial products offered to retail public. 34 Against this backdrop, MAS is taking a multi-pronged approach to safeguard consumer interests. First, we are enhancing regulatory safeguards for retail investors in unconventional investment schemes. Second, we will facilitate retail access to simple, lower cost products. Third, MAS will help to empower consumers with enhanced disclosure and information access. Fourth, we are raising standards of financial advice to consumers.