Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260125 
Year of Publication: 
2015
Series/Report no.: 
Working Paper No. 2014:28
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
Abstract: 
We assess Lars E O Svensson's prominent critique of the Swedish Riksbank. We reject his two major claims: first that the Riksbank has anchored inflation expectations at the 2 percent inflation target, and second, that the original version of the Phillips curve, based constant inflation expectations, is appropriate to calculate the unemployment effects of monetary policy. We find his conclusion that the Riksbank's policy has contributed to an average of 38 000 more unemployed every year 1997-2011 misleading. We also show that the inflation targeting of the Riksbank 1995-2014 is successful compared to previous monetary regimes.
Subjects: 
Sweden
inflation targeting
Phillips curve
inflation expectations
Swedish Riksbank
unemployment
JEL: 
D84
E24
E31
E52
E58
Document Type: 
Working Paper

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