Skingsley: Monetary policy facilitates the changes following on from digitalisation
“Digitalisation contributes to a new way of producing, pricing and demanding goods and services. If we can maintain a stable rate of inflation close to our target, monetary policy will help this changeover go smoothly.” This was one of the points made by Deputy Governor Cecilia Skingsley when she spoke at Entreprenörskapsforum today.
Date: 26/03/2019 12:00
Speaker: Deputy Governor Cecilia Skingsley
She went on to say that the changes affect the playing fields for both individuals and companies. The labour market is being remoulded as old jobs disappear and new ones are created. E-commerce means that competition will increase and consumers will gain more power, which may slow down prices and reduce companies’ profit margins.
The changes are necessary to increase our welfare, but we should not disregard the fact that they create problems for some people in the short term. Everyone therefore needs to have the possibility to update their knowledge and skills to be able to adapt to the new conditions, and the markets may need to be monitored and regulated to ensure that strong actors do not exclude new companies.
In a changing world we need to have clear game rules to ensure the economy functions smoothly. Reliable price stability, in terms of purchasing power, is one such game rule. It makes it easier for individuals and companies to plan for the future, it improves price setting and wage formation and thus contributes to more stable economic activity, concluded Ms Skingsley.