The Swedish Experience of an Inflation Target
1994 (English)Report (Other academic)
The paper gives a brief account of the Swedish experience of an inflation target in a floating exchange rate regime; identifies, documents and discusses the current problems in Swedish monetary policy and their origins; suggests what can be done to remedy the problems; and draws some general conclusions. The two main current problems are the lack of credibility of the target and the significant risk that the target will be missed. The reasons for the lack of credibility include the fiscal situation, the institutional setup of monetary policy, the political division about monetary polcy, and the insufficient transparency of and commitement to the current inflation-targeting policy.
Place, publisher, year, edition, pages
Stockholm: IIES , 1994. , 30 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 587
monetary policy, floating exchange rates
IdentifiersURN: urn:nbn:se:su:diva-41912OAI: oai:DiVA.org:su-41912DiVA: diva2:342933