Such an application is not uncomplicated, partly because the Riksbank's independence is somewhat eroded when financing becomes dependent on parliamentary decisions.41 Even if the Riksbank's loss were to be significantly higher this year than market prices now indicate, there is hardly any urgent need for capital injections; the scenarios I have discussed do not arise overnight. According to the new Sveriges Riksbank Act, the Riksbank is to apply for a capital injection when equity falls below a certain (positive) level, but since the new law does not apply until the 2023 financial statements, I see no reason for the Riksbank to apply for a contribution in the near future.42  Many central banks are going to make losses now Following the global financial crisis in 2008, and especially during and after the pandemic, many central banks have purchased assets for similar reasons to the Riksbank. In addition, several of them have purchased considerably larger volumes in relation to the size of their economy than the Riksbank (see Figure 13). They have also often bought assets with a longer maturity – and thus more interest risk – than the Riksbank. We can expect these central banks to also report losses this year. 41 See Nordström and Vredin (2022) for a more detailed discussion of financial independence. 42 The ECB has long argued in its convergence reports that “an NCB should always be sufficiently capitalised.
Limit the build-up of debt despite the need to stimulate the economy I would also like to say something about the interplay between current monetary policy and measures to mitigate the risk factors I have mentioned. Is it really justified to introduce measures that may dampen household consumption or activity on the housing market when the Riksbank is at the same time trying to stimulate the economy in order to increase  3  Several studies based on household data from the financial crisis of recent years show that highly-indebted households reduced their consumption more than households with low debts (see for example Dynan 2012, Mian et al. 2013, and Andersen et al. 2014). Studies that compare developments in different countries also indicate that high or growing indebtedness in the household sector entails higher risks to the real economy, even if the households also have substantial assets (see for example IMF 2012, Jorda et al. 2013, and Flodén 2014). 4  See Riksbank (2014b). 2  BIS central bankers’ speeches  inflation? This question is particularly relevant given that the repo rate is at zero and cannot be cut much more. I think that the question, at least in principle, should nevertheless be answered in the affirmative. It must be possible to meet financial risks with targeted measures even if this makes it more difficult for monetary policy to attain the inflation target.