Skingsley: What role for monetary policy in achieving inclusive and sustainable growth
On Thursday Deputy Governor Cecilia Skingsley takes part in a panel debate on "The Global Economy: What can we expect". In her introductory speech, she discusses the distribution effects of the expansionary monetary policy conducted in recent years: "What role for monetary policy in achieving inclusive and sustainable growth".
She observes that scientific studies indicate that the distribution effects have been minor. Studies carried out regarding other countries other than Sweden indicate a growing effect in the spread of total incomes, as a result of rising asset prices, but that this is counteracted by the fact that unemployment has been lower than in a situation without expansionary monetary policy. In addition, she says that the inflation target is in general the best contribution from monetary policy to inclusive and sustainable growth.
Ms Skingsley also notes that new technology and globalisation generally entail challenges in terms of distribution policy for economic policy as a whole. Social safety nets that favour transition, as well as education and skills development to increase employability, are therefore important. This type of policy alleviates the short-term negative effects on the labour market and pave the way for long-term positive effects when new jobs are created.
Read her introduction here [pdf]