15  Figure 7 Parities with the US dollar  Real exchange rate (3)  (change accumulated since 29 May 2017, percentage points  2  (índice 1986=100)  2  120  0  110  110  -2  -2 100  100  -4  -4  90  -6  80  90 Spot (09/06) 80  -8  70  70  Latin America (1)  0  120  2002-2016 avg 1997-2016 avg  TCR  Chile  Commodities currencies (2)  -6  -8 05-17 06-17 07-17 07-17 08-17  89 93 97 01 05 09 13 17  (1) Includes Brazil, Colombia, Mexico and Peru. (2) Includes Australia, Canada, New Zealand and South Africa. (3) Preliminary estimates for August 2017. Sources: Central Bank of Chile and Bloomberg. Figure 8 China: Indicators by sector (*) (annual change, percent)  25  30 Railroad freight traffic (right axis)  Retail sales  20  Electric power production  15  20 10  10  0  5  Manufacturing output  0  -10 -20  07  08  09  10  11  12  13  14  15  16  17  (*) Quarterly series. Source: Bloomberg. 16  Table 1 International scenario 2016  2017 (f) Jun.17 Report  Terms of trade Trading partners' GDP World GDP at PPP World GDP at market exchange rates United States China Eurozone Latin America (excl.
In general terms, it can be said that the need for action should be based on the outlook for domestic demand, the stringency of fiscal policy and international trends. In addition, inflation expectations play a key role as an overall indicator of inflationary pressures. In a situation where inflation risk premiums are low, an independent central bank with a price stability target can also contribute to stabilising the economy around its potential growth. How far does this responsibility extend? According to the way the Riksbank has explained the target, annual inflation measured by the CPI is normally to be restricted to 2% with a tolerance interval of ±1 percentage point. In the event of a deviation from this target, inflation is normally to be brought back on target within 1-2 years. In the event of a major deviation, caused for example by a major external disturbance, there may, however, be reason to extend the horizon of the target so as to limit fluctuations in production and employment. In other words, in these circumstances it may be too difficult or too costly for monetary policy to quickly bring inflation back on target. The “new economy” Let me now take up another question that is the subject of much discussion both in the media and in academic circles: the existence of a “new economy”. When people talk about this, their eyes are turned primarily towards the American economy. The concept seems to be capable of covering many phenomena.