Investors in stock market are interested in businesses that are merging in order to gain size, increase their market share, and squeeze out their smaller rivals. In some cases, this leads to monopolistic power, with ability to take even more advantage of their customers and consumers. 2  BIS Review 43/2006  The younger generation places importance on success measured by numbers and quantity rather than quality, value, and merit. The government, which is supposed to be a role model for the public in general, seems to be concerned only with high GDP growth rates – the higher the better. Issues such as mega projects and the rally in the stock index are more welcomed. All success factors are tied-in with increases in monetary value, or in other words, “only money matters”. Under this environment of “only money matters”, and with growth and profit as key determinants of success, the business sector naturally strives to achieve these goals without regard to what is destroyed or lost along the way. For example, many tourist destinations have been created at the expense of local natural habitats and environments. In order to minimize their own costs, industrial factories release untreated wastewater into our waterways, creating adverse consequences for our communities. In the retail sales business, Western influences have attracted us to large chain stores and franchises, such as Tesco-Lotus supermarkets or 7-11 convenience stores. At the same time, traditional family-run businesses and mom-and-pop stores are fast disappearing.
 Low and stable inflation  Cannot affect employment and production  in the long term…  …except through providing conditions for  a good and sustainable economic development. 8  BIS Review 22/2008  In retrospect…  Not as easy as one might think  Monetary policy must be based on  forecasts  Much will happen between the forecast and the final outcome Uncertain data?  Monetary policy considerations?  Unpredictable events?  Poor forecasting?   What demands can one make?  On average, not poorer accuracy  Consistency between different  variables  The driving forces should be explainable  BIS Review 22/2008  9  Other reasons for deviations  Normally we try to reach the target  within 2 years  May deviate deliberately  Considerations for the real economy  Must be communicated clearly  So how did it turn out? CPI and CPI-forecasts Annual percentage change 3.5  3.5 CPI  3.0  3.0  Forecasts  2.5  2.5  2.0  2.0  1.5  1.5  1.0  1.0  0.5  0.5  0.0  0.0  -0.5  -0.5 03  04  05  06  07  Sources: Statistics Sweden and the Riksbank  10  BIS Review 22/2008