This means that the scope for manoeuvre in monetary policy should be used if the outlook for the economy changes.” In the 1950s and 1960s, a strong belief evolved that the economy could be controlled and steered in the desired direction. This optimistic view gradually lost favour in the face of developments. The way in which economic policy is oriented today reflects the experience gained and the lessons learned in the 1970s and 1980s.3 Economic policy at that time was marked by coordination, control and regulation. Important elements were: •  fiscal policy oriented towards full employment  1  See Jahn, Gunnar, Alf Eriksen and Preben Munthe (1966): Norges Bank gjennom 150 år (A history of Norges Bank). In Norwegian only. Norges Bank’s Printing Works, Oslo. 2  Cf. Report No. 1 (2003-2004) to the Storting, National Budget for 2004. Ministry of Finance, Oslo. 3  Hermod Skånland is in the process of completing “Doktriner og økonomisk politikk” (Doctrines and economic policy), which provides a very interesting discussion of post-war economic policy.
Sveriges Riksbank. Pettersson, Ola and Hållö, Torbjörn (2013), Riksbanken sköter inte sitt uppdrag. [The Riksbank is not doing its job] (only in Swedish) Debate article in Göteborgs-Posten newspaper, 14 August. Srejber, E. (2002), Inflation Targeting and Bubbles. Speech at Adam Smith seminars, Paris, 9 July. Sveriges Riksbank (2012), Creating a Swedish toolkit for macroprudential policy. Riksbank studies November 2012. Sveriges Riksbank (2013), Consultation response to the report Preventing and managing financial crises (SOU 2013:6). Schularick, Moritz and Taylor Alan M. (2012), Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870–2008. NBER Working Paper 15512. Swedish Government Official Reports (2013), Förstärkta kapitaltäckningsregler [Stronger capital adequacy rules]. Interim report of the investigation New capital adequacy rules, SOU 2013:65. Stein, Jeremy C. (2013), Overheating in Credit Markets: Origins, Measurement, and Policy Responses. Speech at “Restoring Household Financial Stability after the Great Recession: Why Household Balance Sheets Matter”, research symposium sponsored by the Federal Reserve Bank of St. Louis, St. Louis, Missouri. Talley, Ian (2013), Fed Candidate Kohn Warns Easy Policy Leads to Imbalances. Real Time Economics, Wall Street Journal Blogs, 16 September. Taylor, John B. (1998), Monetary Policy and The Long Boom. Federal Reserve Bank of St Louis Review, November/December. Vredin, Anders, Flodén, Martin, Larsson, Anna and Ravn, Morten O. (2012), Enkla regler svåra tider – behöver stabiliseringspolitiken förändras? [Simple rules, hard times – does the stabilisation policy need to be changed?] (only in Swedish) Economic Policy Group Report 2012, SNS Förlag. 12  BIS central bankers’ speeches