2 The long period of low inflation has also started a debate regarding the grounds for the Riksbank’s monetary policy and the inflation target, which as far as I can tell is more intense than in most other countries. In this sense, too, one can therefore in some ways say that we are pioneers. What I intend to do today is first to say a few words about this debate. Most often, the criticism merely states that the “monetary policy of the Riksbank is wrong”. The reasons for this vary: because a negative policy rate is not healthy, because housing prices are rising, because the krona is too weak or because the economy is already developing well. There is usually no detailed reasoning as to what the consequences would be if the policy was shifted in another direction. In particular, what is often missing, but I argue is crucial, is a discussion on why the advantages of the inflation target should no longer apply and what the consequences would be if the Riksbank abandoned it. After discussing the debate on monetary policy, I intend to conclude by looking ahead and examining the problems and possibilities for monetary policy in the future. Here, I focus in particular on a scenario where monetary policy is not made more expansionary despite a delay in reaching the inflation target. In Sweden, the policy rate has been negative since February 2015. This has not been an uncontroversial policy. The criticism can be divided into two types.
Serious situation in spring 2015 Exchange rates  Unit labour costs 115 140  115  140  Germany USA Sweden  130 105  105  95  95  85  EURGBP  130  120  120  110  110  100  100  85  EURUSD EURSEK  75 Jan-14  75 Jul-14  Jan-15  Jul-15  Jan-16  Jul-16  90  90 05  07  09  11  13  15  Note. The ECB communicated its decision to purchase securities on 22 January 2015 and initiated purchases on 9 March 2015. Exchange rates, index, 1 January 2014 = 100. Unit labour costs in manufacturing industry, euro, index, 2011 = 100. The blue square indicates the effect of the krona appreciating by 30 per cent against the euro. Sources: The ECB, Macrobond and Conference Board Figure 9. Rising trend in housing prices and debts for 20 years despite varying repo rate Index 2000 Q1 = 100  Note. Housing prices have been converted from nominal to real terms by using the CPIF. Sources: Statistics Sweden and the Riksbank  18 [20]  Figure 10.