After its fiscal crisis in the 1990s, Sweden adopted a much more cautious approach to the public finances and set a goal of running a budgetary surplus over the economic cycle.

But should this really be done? After all financial crisis hits the world once every 10 years or so, this is somewhat inevitable and it is only a part of the economic cycle.

Study on economic cycle is of great importance in the field of economic theory. In particular, in modern times, it has deeply practical significance under the background of economic crisis.