This is the way we have tried to work so far, and we will continue to do so as long as necessary. When I come here to the Committee on Finance hearing to answer questions on monetary policy, that subject is usually what my introductory speech concerns. Today it will be slightly different. Recent developments clearly show how closely our main tasks, financial stability and monetary policy, are linked. I would therefore like to begin by talking about those points of contact and various measures we have taken to ensure that certain financial markets will function more normally. With this as a base, I will then move on to the interest rate decisions and the financial turbulence from a monetary policy point of view. Finally, I would also like to make a brief comment on our own experiences of earlier crises and the future of the global financial system. Monetary policy and financial stability – why is the system so important? One can say that the payment system and to some extent the financial markets are the circulatory system of our economy. What is usually referred to as financial stability concerns, to put it simply, working in various ways to ensure the financial system is stable and functions efficiently. For example, individuals, companies and organisations must be able to make and receive payments in an efficient manner.
Broken lines refer to the Riksbank’s forecasts  Sources: The IM F, Statistics Sweden and the Riksbank  Lower employment Thousands, seasonally-adjusted data, 3-month moving average  80  24 New vacant jobs Unfilled vacant jobs  70  21  Redundancy notices (right scale)  60  18  50  15  40  12  30  9  20  6  10  3  0  0 80  85  90  95  00  05  10  Note. Redundancies include outcomes for October  Source: Swedish Public Employment Service  BIS Review 138/2008  17  Lower inflation CPI, annual percentage change 5  5 M PR 2008:3 M PU September 2008  4  4  3  3  2  2  1  1  0  0  -1  -1 00  01  02  03  04  05  06  07  08  09  10  11  Note. Broken lines refer to Riksbank’s forecasts  Sources: Statistics Sweden and the Riksbank  Lower repo rate Per cent, quarterly average  6  6 MPR 2008:3 MPU September 2008  5  5  4  4  3  3  2  2  1  1  0  0 00  01  02  03  04  05  06  Note.