New issue of the Riksbank’s journal Economic Review
News This year's first issue of Sveriges Riksbank Economic Review contains four articles, all with slightly different themes. In the first article, Governor Stefan Ingves discusses Sweden's role in international economic cooperation, and in the second article, First Deputy Governor Cecilia Skingsley and Björn Segendorf discuss changes in the financial infrastructure. These are followed by an article that gives an overview of the foreign exchange market for Swedish krona, and finally a more technical article on various aspects of foreign exchange hedging.
The articles in the first issue of the Riksbank’s journal Economic Review for 2022:
Sweden's role in international economic cooperation – then, now and looking ahead
Governor Stefan Ingves gives his view on the conditions for Sweden to make its voice heard in international economic cooperation, and how these conditions are affected by changing global power relations and radical changes within the EU. The article is an adaptation and further development of materials from various seminars and presentations that Governor Ingves has given in recent years.
Rebuilding the financial structures
First Deputy Governor Cecilia Skingsley and Björn Segendorf discuss how technological advances affect the supply and demand for financial services, and the challenges posed by these changes. In addition, they describe what the Riksbank is doing to future-proof the parts of the financial infrastructure that the Riksbank supplies.
Understanding the foreign exchange market
Amanda Nordström describes the changes undergone by the foreign exchange market in recent decades, and focuses in particular on the market for Swedish krona. She also presents a measure of market liquidity for Swedish krona, and discusses how liquidity has varied over time.
Hedging against exchange rate risk – maturity choice and roll-over risk
Christoph Bertsch analyses various aspects relevant to Swedish financial companies that hedge their financial investments in foreign currency. In particular, he compares the risks and benefits of hedging in the short or long term, and presents a conceptual framework that can be used to analyse these questions.