Swedish National Debt Office
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The Swedish National Debt Office or Riksgaeldskontoret founded by the Riksdag of the Estates in 1789, is a Government Agency in Sweden. The first task of the Debt office was to finance the War aganist Russia started by king Gustav III.
The method of raising funds was to issue promisory notes called Riksgaelds denominated in Riksdaler which was the Swedish currency at the time. The reason why the funds couldn't be raised through the Riksbank was that its notes had to be backed by Silver (commodity money) to two thirds, while no such restrictions applied for the promisory notes (credit money) issued by the Debt office. This produced a heavy seigniorage induced inflation, where the exchange rate, for the promisory notes against Silver, was 1 to 4 in 1834.
In 1989, after two hundred years as one of the few agencies that reported directly to Parliament, the Debt office was reconstituted and is now reporting to the Ministry of Finance and the Cabinet. After 1989 it also assumed the role as the Government internal bank from the Riksbank.
See also