Sweden freezes prices in a stab at inflation
The government introduced a radical anti-inflation package Thursday, featuring immediate price and rent freezes, to combat high wage settlements. Prime Minister Olof Palme introduced the package, including immediate price and rent freezes, a freeze on 1985 stock dividends, and a freeze on some corporate and local government liquid assets.
In a controversial step, Mr. Palme also invited labor and management officials to meet with the government, which traditionally does not interfere in wage negotiations, on curbing wage demands that might further fuel inflation, now at 9 percent.
The Stockholm stock exchange dropped off sharply after the announcement, with buying bids on major corporate shares declining by up to $1.75.