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Oct 11, 2023 260 likes •339 views

Perspectives on monetary policy Cecilia Skingsley Deputy Governor Riksdag Committee on Finance 7 March 2019 My presentation today I support the assessments and the monetary policy decision in February We have a long period of very

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Perspectives on monetary policy

Riksdag Committee on Finance 7 March 2019

Cecilia Skingsley Deputy Governor

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My presentation today

I support the assessments and the monetary policy decision in February
We have a long period of very expansionary monetary policy behind us
According to our forecasts, we have entered a slow normalisation process
Appropriate time to provide some perspective on monetary policy and its effects
Distributional effects a topical issue

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Low and stable inflation helps to avoid arbitrary redistribution

Note. Annual percentage change. Inflation outcomes for the period before 2005 are

calculated in accordance with the method used in real time during this period. Source: Statistics Sweden and the Riksbank

2 6 10 14

2 6 10 14 80 85 90 95 00 05 10 15

CPIF Mean value

1981-1992 Mean 7.6 1995-2019 (January) Mean: 1.7

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The expansionary monetary policy of recent years has been aimed at achieving the inflation target, but has also had distributional effects

Rising asset prices have benefited certain groups ... … while more people in work has contributed to income equalisation

Note. Thousands, index (Q1 2005 = 100) and per cent of the

population, aged 15-74, seasonally adjusted data. Source: Statistics Sweden, Valueguard and the Riksbank 50 100 150 200 250 300 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000

Other assets Insurance, pension and standardised guarantee schemes Tenant ownership rights Shares and funds Currency and deposits OMX (right scale) HOX (right scale)

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Difficult monetary policy situation 2014-2015

Inflation Inflation expectations

Note. Annual percentage change. Inflation expectations refer to

averages among money market participants. Sources: Statistics Sweden and Kantar Sifo Prospera

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Difficult monetary policy situation 2014-2015

Inflation Inflation expectations

Note. Annual percentage change. Inflation expectations refer to

averages among money market participants. Sources: Statistics Sweden and Kantar Sifo Prospera