Category Archives: Articles

New publication: “Monetary Policy Trade-Offs in an Estimated Open-Economy DSGE Model” (with Malin Adolfson and Stefan Laséen, Sveriges Riksbank, and Jesper Lindé, Federal Reserve Board)

New publication: “Monetary Policy Trade-Offs in an Estimated Open-Economy DSGE Model” (with Malin Adolfson and Stefan Laséen, Sveriges Riksbank, and Jesper Lindé, Federal Reserve Board), Journal of Economic Dynamics and Control 42 (2014), 33-49. PDFAbstract .

Leaning Against the Leaners

Article in Central Banking 24-2 (November 2013) 27-36.

There is much debate in Sweden and further afield about the use of monetary policy – rather than macro- and micro-prudential tools – to ‘lean against the wind’ as a way of preventing dangerous bubbles building up in economies. This article looks at whether, under a mandate of flexible inflation targeting, household debt should be introduced as an additional target for monetary policy. It also reviews how to conduct policy evaluation, drawing on six years of experience gained as a policymaker at the Sveriges Riksbank.

Article: “Challenges for the Riksbank – Monetary Policy and Financial Stability”

New article: “Challenges for the Riksbank – Monetary Policy and Financial Stability” (“Utmaningar för Riksbanken – penningpolitik och finansiell stabilitet,” in Swedish), Ekonomisk Debatt nr 5 2012, årgång 40, 17-29. Swedish

Background Félix Neubergh Lecture 2011, University of Gothenburg, November 17, 2011 Full Neubergh Lecture, Lars E O Svensson

Handbook chapter: “Inflation Targeting”

Handbook chapter: “Inflation Targeting,” in Friedman, Benjamin M., and Michael  Woodford, eds., Handbook of Monetary Economics, Volume 3b, chapter 22, Elsevier, 2011.
Chapter. Paper.

Abstract
Inflation targeting is a monetary-policy strategy characterized by an announced numerical inflation target, an implementation of monetary policy that gives a major role to an inflation forecast that has been called forecast targeting, and a high degree of transparency and accountability. It was introduced in New Zealand in 1990, has been very successful in terms of stabilizing both inflation and the real economy, and as of 2010 has been adopted by about 25 industrialized and emerging-market economies. This chapter discusses the history, macroeconomic effects, theory, practice, and future of inflation targeting.

JEL classification: E52, E58, E42, E43, E47

Keywords: Flexible inflation targeting, forecast targeting, optimal monetary policy, transparency