And one of its tasks was to “maintain the domestic coinage at its right and fair value"1 – which, neglecting the old-fashioned language, sounds like a policy objective that would still be useful today. Money based on public trust can powerfully enhance welfare. This is what the experience of the Riksbank has shown, throughout its trials and tribulations.
The evolution of external inflation forecasts and of inflation expectations as derived from the analysis of long-term interest rates is reassuring. It suggests that financial markets and economists expect price developments in the medium to long term to be in line with the ECB's definition of price stability.