I would therefore like to very briefly round off by saying something about what I personally believe could increase the long-term growth potential in Sweden. I believe that the stimulance for increased growth capacity in the Swedish economy can be found in three main arease, which concern, firstly, efforts to promote entrepreneurship, i.e. more people choosing to start up companies and companies growing. The entrepreneurs' share of the work force in 6 Sweden is low. Compared with other OECD countries, Sweden was ranked no. 19 in 2000. Secondly, we should invest more in knowledge and education, at all levels and for everyone. Research belongs here too, as does the link between research and new products - innovations. Education promotes both economic growth and individual welfare. The third area can be called the renewal of working life. A good, rich society must make use of the productive force that all people have. To make this possible probably requires new thinking in many areas. So, how about access to capital, this is surely decisive for growth? Certainly, but capital seeks to go where it will obtain the best return. Attractiveness, an ability to attract and retain investments, is created by entrepreneurs, research & development and competence. In an increasingly globalised market, regions and places compete with one another for investments. The most important factor in attracting investments is tied to people's capacity. The key to growth is human capacity and will.
Today, I intend to discuss my view of monetary policy and explain in more detail why I entered a reservation at the latest monetary policy meeting. Much of the reasoning is the same as when I advocated a lower repo-rate path. 2 The new points that I want to make here today relate to the reasons why I entered a reservation in favour of the extended repo-rate path rather than a lower repo-rate path with a reduced repo rate. Let me begin by presenting my general view of monetary policy. 1  One may ask why the focus should be on the CPIF and not the CPI. In a situation in which significant reporate changes have very large direct effects on the CPI, I consider it to be more appropriate to focus on stabilising the CPIF around the inflation target, instead of the CPI. 2  See also the speech “Why a lower repo rate?” that I made at Umeå University on 24 February this year for a detailed account of that reasoning. BIS Review 60/2010  1  Flexible inflation targeting stabilises both inflation and resource utilisation When discussing what repo-rate path one should choose it is natural to take the Riksbank’s monetary policy objectives as a starting point. The Sveriges Riksbank Act and its preparatory work stipulate that monetary policy focuses on stabilising inflation around the inflation target and resource utilisation around a normal level. This is what is referred to as flexible inflation targeting.