@techreport{NBERw17823, title = "Practical Monetary Policy:
Examples from Sweden and the United States", author = "Lars E.O.
Svensson", institution = "National Bureau of Economic Research",
type = "Working Paper", series = "Working Paper Series", number
= "17823", year = "2012", month = "February", URL =
"http://www.nber.org/papers/w17823", abstract = {In the summer
of 2010, the Federal Reserve’s and the Swedish Riksbank’s
inflation forecasts were below the former’s mandate-consistent
rate and the latter’s target, respectively, and their
unemployment forecasts were above sustainable rates. Given the
mandates of the Federal Reserve and the Riksbank, conditions in
both countries clearly called for policy easing. The Federal
Reserve maintained a minimum policy rate, soon started to
communicate possible future easing, and in the fall launched
QE2. In contrast, the Riksbank started a period of rapid
tightening. I examine the arguments that were raised in
opposition to the Federal Reserve's easing, and those for th