It is certainly reasonable to assume that inflationary impulses from, for example, rising energy prices will more easily take hold if demand in the economy has been kept up by an expansionary policy than if it has not. But I find it difficult to push the argument further than that. Apart from the fact that there are already convincing explanations for the high inflation, it would require that a monetary policy that has had difficulty for years in bringing inflation up to the target would suddenly result in some kind of all-at-once effect, making inflation instead severely overshoot the target. Even though monetary policy works with long and variable lags, this would be an extreme example, with a very odd monetary policy transmission mechanism.4 In the Swedish debate there is also an almost opposite argument. This states that the high inflation is entirely due to the fact that the supply of commodities and production inputs has been affected by the pandemic and the war in Ukraine, and that it is therefore pointless and counterproductive for the Riksbank to try to bring inflation down again by raising the interest rate. If you only wait for a while, the effects on inflation will subside, and then it will fall back to the target by itself. But that is also a questionable argument. Inflation is not only due to supply-driven price rises, but has spread more widely in the economy. This has been partly due  cent. This outcome was published by Statistics Sweden on 18 February.
Philipp Hildebrand: Swiss monetary policy and financial markets Summary of a speech by Mr Philipp Hildebrand, Member of the Governing Board of the Swiss National Bank, at the Autumn forecast of the Swiss Institute for Business Cycle Research, Zurich, 5 October 2006. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch)  *  *  *  Transparency and communication enhance the impact and the precision of monetary policy. Monetary policy functions through expectations. This means that it is first and foremost expectation management. Central banks strive for transparency regarding their methods and approaches. All in all, the current economic and, in particular, the structural uncertainties are resulting in a greater range of possible economic scenarios and thus also in an increase in the range of expectations regarding our future monetary policy. In other words, being transparent does not automatically mean being predictable. Therefore, the Swiss National Bank (SNB) considers it particularly important to communicate its monetary policy concept to the markets and the public. This allows them to arrive at similar conclusions to those reached by the SNB. BIS Review 92/2006  1