This applies, I can say now, to most of their suggestions. I will then also take up a couple of points on which I do not entirely agree with the conclusions drawn by the authors. One of the recommendations given is that the Riksbank should make it clear in its Inflation Report that the flexibility of our inflation-targeting policy means that we attempt to subdue fluctuations in both inflation and the real economy. This is a point I agree with, but in my opinion we have actually already done so. With effect from the second Inflation Report this year, we have a special box explaining how the Riksbank has scope when setting interest rates to give consideration to developments in both inflation and the real economy. The box is an extract from a document entitled “Monetary policy in Sweden”, which we published in May this year. The fact that inflation targeting gives consideration to the stability of both inflation and the real economy is moreover something we have long emphasised in speeches and other forms of communication. However, it is probably fair to say that we have gradually become clearer on this point, as we have learnt more about how inflation-targeting policy should be conducted. BIS Review 117/2006  1  Another recommendation in the evaluation is that the Riksbank should base its forecasts on its own assessment of which repo rate path is appropriate; that is, that we should take a step further compared to our current method.
Stefan Ingves: Comments on “An evaluation of Swedish monetary policy 1995-2005” Speech by Mr Stefan Ingves, Governor of the Sveriges Riksbank, at the Riksdag Committee on Finance, Stockholm, 30 November 2006. *  *  *  Thank you for the invitation to come here! I would like to begin by thanking the authors, Professor Giavazzi and Professor Mishkin, for an interesting and comprehensive report. As we at the Riksbank have said earlier, we consider it a very good initiative by the Committee on Finance to commission two highly qualified external experts to make an evaluation of the monetary policy conducted over the past decade. As the Riksbank has an independent position, it is important that monetary policy should be regularly examined and evaluated. The Committee on Finance makes its own evaluation of monetary policy every year, but I nevertheless think it is a good idea to occasionally supplement these evaluations with reports made by external experts. It is a particular advantage that two foreign academics have carried out the examination. This gives an outside perspective on Swedish developments, which can be very valuable. As you can see, the report is fairly comprehensive and it is therefore impossible for me to mention all of the aspects that are covered. Let me just say as an overall comment that I feel the report has been very pleasant reading. Although the authors express criticism on some points, it is clear that their overall impression of Swedish monetary policy is very positive.