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Let me start from standard flexible inflation targeting, according to which monetary policy aims at stabilizing inflation around an announced inflation target and resource utilization around a long-run sustainable rate. Furthermore, let me for concreteness assume that the unemployment rate is a...
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Should monetary policy use its short-term policy rate to stabilize the growth in household credit and housing prices with the aim of promoting financial stability? We ask this question for the case of Canada. We find that to a first approximation, the answer is no- especially when the economy is...
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This paper discusses how monetary policy in Sweden has evolved since 1973. We provide a chronology of the different … rate regime (1973 - 1992) and the inflation targeting regime (1993 - 2022). Inflation in Sweden has been more stable under … developments in Sweden have in many respects been similar to that of Denmark. Lastly, we identify and discuss recurrent themes in …
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The paper describes the monetary and fiscal policy frameworks in Sweden and analyses how they were established as well … as current challenges. Sweden provides a good example of how deep economic crisis, in interaction with independent … frameworks. It remains to be seen whether it will be possible in Sweden to adapt the monetary and fiscal frameworks to changed …
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