SPEECH DATE:  6 Dec 2017  SPEAKER:  Deputy Governor Per Jansson  VENUE:  Fores, Stockholm  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  The ideological debate on monetary policy – lessons from developments in Sweden∗  These are unusually exciting times to be working at a central bank. Challenges have always been present, of course, but I think that it could be claimed that seldom have they been of such a fundamental nature as they are today. One example is the debate on limiting central banks’ independence that has arisen recently. This has come about after several countries have found themselves unable to conduct monetary policy using policy rate adjustments alone. Instead, they have had to complement this with tools that some observers feel have blurred the boundary between monetary policy and other economic policies. Another example is that technological progress within the area of payments has led to the rapid decline of cash usage in a number of countries, not least Sweden. Whether and how this trend will affect the conditions for conducting monetary policy and whether it provides reason for the central banks to issue electronic money as a complement to physical cash will be the focus of intense discussions in the period ahead. These are important and fundamental issues.
Natural to raise the repo rate 2010–2011 Purchasing Managers’ Index in the manufacturing sector  Lending to households and companies  An index over 50 indicates growth  Annual percentage change  GDP  Inflation  Quarterly change in per cent calculated as an annual rate, Seasonally-adjusted data. Annual percentage change  6  CPIF excluding energy CPIF CPI  4  6 4  2  2  0  0  -2  06  08  10  12  14  -2  Note. Forecasts from April 2011. Sources: Institute for Supply Management (ISM), Swedbank, Statistics Sweden and Sveriges Riksbank  18 [20]  Figure 3. Troubling situation at turn of year 2014-2015 Inflation  Annual percentage change  Inflation expectations Annual percentage change  Note. Measured using the CPIF (left) and the CPI (right). Sources: Statistics Sweden and TNS Sifo Prospera  Figure 4. 2015–2017 – inflation rises towards target again Inflation  Annual percentage change  Inflation expectations Annual percentage change  Note. Measured using the CPIF (left) and the CPI (right). Sources: Statistics Sweden and TNS Sifo Prospera  19 [20]  Figure 5. The development of services prices indicates that the Phillips curve works Annual percentage change  Note. Broken lines represent mean values since 2000. Source: Statistics Sweden  Figure 6.