Svante Öberg: Economic conditions for wage formation Speech by Mr Svante Öberg, First Deputy Governor of the Sveriges Riksbank, at the National Mediation Office, Stockholm, 16 June 2011. *  *  *  The Riksbank’s task is to maintain a low and stable level of inflation. But the development of wages affects inflation and inflation affects the development of wages. Wage formation and monetary policy are consequently connected, and, consequently, the Riksbank monitors wage formation with great attentiveness. The message of my speech today can be summarised by two points:   Wage formation has worked well since the mid-1990s, and my assessment is that it will continue to work well in the years ahead.   But if wage increases were to be slightly less than the approximately 3.5 per cent per year that the Riksbank estimated in April, not only inflation and unemployment could be lower, but so could interest rates. I will start by taking a look back at wage formation over the last 40 years. Following this, I will address the economic conditions for wage formation in the years ahead. I will base this on the Riksbank’s most recent forecast for Sweden’s economy, from April. A look back at wage formation over the last 40 years Wage formation did not work well in the 1970s and 1980s Following the “record years” of the 1960s, a period of weaker development for Sweden’s economy began in the mid-1970s.
Philipp M Hildebrand: The international monetary system Opening remarks by Mr Philipp M Hildebrand, Chairman of the Governing Board of the Swiss National Bank, at the High-Level Conference on the International Monetary System, Zurich, 11 May 2010. * I. *  *  Introduction  Good morning, Ladies and Gentlemen. It is a pleasure and special privilege to welcome you to this conference on the international monetary system. I am delighted that, together with the IMF, we have succeeded in bringing together such an outstanding group of policy makers and academics. I want to thank you for taking the time to join today’s discussion at this critical juncture for the international monetary system. I am especially grateful that the Managing Director of the IMF is with us today. Dominique, a very warm welcome to you. I know I speak on behalf of everyone here today when I say that we really appreciate your presence. Conferences on the international monetary system are held with great regularity, particularly in the wake of financial crises. It is therefore not surprising that the recent crisis has brought renewed attention to the functioning of the international monetary system. But as Herb Stein noted more than 40 years ago, it is not easy to define the international monetary system. Where does the international monetary system end and domestic economic policy begin? Did the recent crisis have its roots in shortcomings of domestic policies or in shortcomings of the international monetary system?