Efficient macroprudential policy increases the Riksbank’s possibilities to carry out its main tasks Let me summarise by emphasising my most important message today. Monetary policy has to some extent also given consideration to the risks arising from household debt, in addition to inflation and resource utilisation. We are eager to avoid the unpleasant developments in a number of countries in recent years. At the same time, I believe that there are several macroprudential policy tools that could be more efficient than the repo rate in preventing financial imbalances. So far, there is no framework for macroprudential policy in Sweden, and this needs to be remedied as soon as possible. In my opinion, there are good reasons why the Riksbank should play a major role in macroprudential policy. We have long conducted analysis of macroprudential policy issues; moreover, there are clear points of contact between monetary policy and macroprudential policy, for instance, the fact that they affect the conditions for one another. The Financial Crisis Committee’s proposal does not provide a clear framework for macroprudential policy in Sweden, and the proposal also differs from the ESRB’s recommendation and from the practice in other EU countries. In the future, it is desirable that the Riksbank should be able to use the policy rate to an even greater extent to stabilise inflation and the real economy in the future, and that more appropriate tools than the repo rate can be used to reduce the risks of financial imbalances.
With the world economy now beginning to catch a cold from the slowdown in the US economy, the quality and competitiveness of our exports means that our companies are better equipped than others to hold their own in the global marketplace. Foreign trade not only represents Switzerland's growth driver, but it is also our friend when economic times are hard. BIS Review 45/2008  1