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Because of this and their foreign-currency exposure, many households' debts have doubled in krona terms.
Icelandic wages are up in krona, but way down in euros, to an extent that seems almost unimaginable in a euro zone economy.
Controlling M1 in that context would clearly not help.19 It may even be counterproductive: restricting M1 would imply a more restrictive monetary policy, which could increase interest rates in Krona.
The two banks that have the largest exposure are Swedbank (SWEDA SS, 6.91) and Skandinaviska Enskilda Banken (SEB SS, 4.94), down 58% and 41% (in krona terms), respectively, over the past year.
We can plead with HBO to Take Our Money all we want, but unless we're paying in krona, we're out of luck for now.
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The firm has just revealed that profits rose by 36% in krona-terms over the same period.Although a weaker krona helps to boost revenues, analysts have been worrying that it could also hamper profitability.
Costs were estimated in Swedish krona (SEK) in year 2004, inflated to reflect 2012 costs according to the Swedish consumer price index [ 19] and then transformed into Euro (EUR) (1 Euro 2012 = SEK 8.71).
None of the banks needed to borrow at these rates, but the market signal was clear enough: the banks were in trouble, and there was a question-mark over the central bank's ability to stand behind them.The outcome in 2008 has been a slump in the krona, which has fallen against the euro by almost 30%, as carry traders unwound their contracts and hedge funds shorted the currency.
15 Costs were in Swedish krona and were converted to costs in euros using the average exchange rate for 2009 (€1=10.74 Swedish krona).
The commission paid by the seller is between 1.5 and 4percentt of the sales price, agents said, and transactions are typically done in Swedish krona.
A study by the Federal Reserve Bank of Cleveland concluded that Securum eventually returned about 58percentt of that upfront cost to the Swedish treasury, though in depreciated krona.
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