However, the uncertainty around this expectation is large – at $ billion it is almost as large as the entire size of the large-scale asset purchases announced in November 2010 or the Maturity Extension Program announced in September 2011.6 This likely reflects uncertainty about how the economy will evolve and how the FOMC will adjust its purchases in response to changes in the economic outlook or the costs and benefits of the policy. Implementation of the current asset purchase program In implementing the current purchase program, the Desk has operated in a similar manner as in past programs. As always, outright purchases in Treasuries and agency MBS are conducted through operations that seek to acquire securities at competitive prices while minimizing any market disruptions. There are some key differences between our Treasury and MBS operations that I would like to discuss. As counterparties in our operations, you know that outright purchases of Treasury securities are conducted through large-scale, multiple-security auctions via the Desk’s FedTrade platform, which allows all primary dealers to place multiple offers across all eligible securities simultaneously. Purchases of MBS, on the other hand, are currently conducted using TradeWeb, a commercial trading platform.7 The platform allows buyers to solicit offers for one security at a time from up to four counterparties, so the Desk includes dealers in operations on a rotating basis. As a result, the Desk purchases MBS in a series of smallerscale, more frequent auctions.
There are also many indications that the covariance between Sweden and the euro area will increase further if we join the Eurosystem, as trade and integration with the euro countries would be strengthened. Increased trade and greater openness to the outside world have positive effects on the development of growth and incomes. In my opinion, the European integration of which EMU forms a part should not stop at the borders of the EU, but be the first step towards greater global openness. Conclusion I have today accounted for the current monetary policy situation in Sweden and the assessments that formed the basis for our decision last week to leave the repo rate unchanged. A low inflation rate (2%), which is the target for monetary policy, does not in itself create good growth and welfare; it should rather be seen as a fundamental condition to ensure that other parties - trade and industry, organisations, government and parliament - are successful in working to improve Sweden’s economy by various different means. In other words, it is an extensive and complicated interplay that will determine how well a country’s economic potential is realised. The Riksbank does its best to ensure that monetary policy provides a contribution here. Thank you for listening! 1  EMU commission of enquiry report SOU 1996:158. BIS Review 37/2002  7  1.