Sweden's Persson on monetary policy

In the speech 'Monetary policy and the labour market' given on 12 May Kristina Persson of the Sveriges Riksbank said the importance of monetary policy lies not merely in the possibility to influence through temporary changes in the repo rate.

"An essential part of monetary policy's ability to stabilise lies in influencing inflation expectations so that they come close to the inflation target. A firmly anchored 2 per cent inflation target will affect price-setting and wage formation so that shocks

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