The CPIF is the CPI with a fixed mortgage rate. Sources: Statistics Sweden and the Riksbank  Figure 18. Repo rate Per cent, quarterly averages 5  5 September October  4  4  3  3  2  2  1  1  0  0 06  08  10  12  14  Source: The Riksbank  BIS central bankers’ speeches  15
Another, it is sometimes suggested, would be that the economic framework for firms would be perceived as more secure and stable if Sweden adopted the single currency. Once again, the strength of these arguments is difficult to assess, partly because they have evident political purposes. But opinions of this type may clearly have effects if they are current among central decision-makers in the business sector. Political arguments favour participation This brings me, finally, to the political arguments for and against adopting the single currency. The Calmfors report discussed the implications of participation for Swedish policy and its legitimacy, as well as the consequences for Sweden’s voice in Europe and the world. On the first point I shall simply say that I agree about the importance of any decision to participate having a high degree of legitimacy. This in turn calls for an animated discussion of the EMU issue. Having said that, I shall now concentrate on the other aspect. The report considered that if Sweden participated in the monetary union, we would be in a better position to influence EU decisions. The more countries that participated, the greater would be the strength of this argument. The Riksbank agreed but found the argument unduly cautious as regards the political advantages. We saw major political benefits from participation and considered that an outsider position would clearly weaken Sweden’s voice in the European debate and decision-making process. As I see it, since the report was presented and the Riksbank submitted its opinion, the political argument has gained appreciable weight.