A central rate that is overly weak would therefore provide stimulus to the Swedish economy that could lead to higher inflation than in the other participant countries as well as unemployment at a later stage when the impact of the weaker competitiveness makes itself felt. With an overly strong rate, the risk instead is of lower inflation than in the other countries, initially having a negative impact on growth and employment. This line of reasoning also clearly demonstrates the connection to fiscal policy. A weaker exchange rate requires tighter fiscal policy and vice versa. In practice, it is not possible to base the choice of the central and conversion rate only on model estimates of what is a desirable longterm rate. It is also important to take into account expected developments in the coming years. It is not in the interests of either Sweden or the other involved countries to have problems arise during the period of Swedish participation in ERM2. In this respect, the economic climate is a factor that demands attention. Previous experience also indicates that negotiations of a central rate would be influenced by the rate that has prevailed between the krona and the euro in recent years. Recent market assessments have been in an interval between 8.50 and 9 kronor per euro, as I mentioned earlier. Monetary policy strategy in ERM2 If Sweden were to join monetary union, the responsibility for ensuring a balanced development in our economy would essentially lie with the government and the Riksdag.
To ensure stability as regulations are lifted, leveraging on technology to improve data monitoring systems have enhanced the ability to monitor developments to assess any emerging risks to the system. During this period of strong fundamentals and rising potential for economic expansion, Malaysia has the flexibility to introduce measures not only to support growth but also to improve the quality of the growth and its long term sustainability. This includes significant investment in education and according priority towards achieving socio-economic stability. Overall, a balanced and holistic approach to economic management is aimed to ensure the foundation for a strong economy and its competitive position in the global economy. Thank you.