New issue of the Riksbank’s journal Economic Review
News This issue of Sveriges Riksbank Economic Review contains three articles that address topical issues in the discussion of monetary policy, both in Sweden and the rest of the world. These include monetary policy communication, lessons learnt from the period of high inflation, and fiscal policy frameworks and the interaction between fiscal and monetary policy.
The articles in this year’s second edition of the Riksbank’s journal Economic Review are summarized below:
Openness and clarity – key ingredients in Riksbank communication
Anna Breman and Anna Seim, First Deputy Governor and Deputy Governor respectively, write about key elements of the Riksbank's monetary policy communication. The Riksbank is often ranked highly in measurements of monetary policy transparency, which is largely because the Riksbank is one of few central banks that publishes a forecast for its own policy rate – an interest rate path – and includes the names of the Executive Board members when their contributions are reported in the minutes of the monetary policy meetings. Another element of Riksbank communication on monetary policy is the publication of so-called alternative scenarios in the Monetary Policy Reports. These three elements of the Riksbank’s monetary policy communication fulfil different functions, which are described in more detail in the article. The article is based on presentations and speeches given in various international contexts during spring and summer 2025. [Article]
Lessons from the high inflation period
Selena Durakovic, Jesper Johansson and Oskar Tysklind summarise analysis and research conducted in recent years on the high inflation in Sweden during 2022 2023. The authors show that the surge in inflation was due to major changes in both supply and demand following the pandemic, and to Russia’s invasion of Ukraine. They also ask whether the impact of the changes on inflation and the wider economy could have been better predicted using the economic models and data available at the time. Based on this analysis, they draw some conclusions for future forecasting work. [Article]
Fiscal rules and debt in the 21st century: a brief overview
Mika Lindgren and Charlie Nilsson provide an overview of some key fiscal policy themes over the past three decades. The background is the increased interest in recent years in the interaction between monetary and fiscal policy, and that fiscal policy in several large economies has come to be questioned from a long-term sustainability perspective. The authors focus in particular on fiscal policy frameworks, developments in public debt levels and fiscal sustainability. [Article]