Change search
ReferencesLink to record
Permanent link

Direct link
Inflation Targeting and Leaning against the Wind
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. Swedish Institute for Financial Research (SIFR), Sweden.
2014 (English)In: The International Journal of Central Banking, ISSN 1815-4654, Vol. 10, no 2, 103-114 p.Article in journal (Refereed) Published
Abstract [en]

Should inflation targeting involve some leaning against the wind? Sweden provides a case study, since the Riksbank has been leaning against the wind since 2010, stating concerns about risks associated with the household debt-to-income ratio. The cost of this policy in terms of low inflation and high unemployment is high. According to the Riksbank's own analysis, the policy rate effect on household indebtedness is very small, and any effect on risks associated with household debt is miniscule. Indeed, much lower inflation than expected has increased households' debt burden and, if anything, increased such risks.

Place, publisher, year, edition, pages
2014. Vol. 10, no 2, 103-114 p.
National Category
Economics and Business
URN: urn:nbn:se:su:diva-109057ISI: 000342792300006OAI: diva2:762160


Available from: 2014-11-10 Created: 2014-11-10 Last updated: 2014-11-10Bibliographically approved

Open Access in DiVA

No full text

Search in DiVA

By author/editor
Svensson, Lars E. O.
By organisation
Institute for International Economic Studies
In the same journal
The International Journal of Central Banking
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 26 hits
ReferencesLink to record
Permanent link

Direct link