Lars Heikensten: Inflation targeting in Sweden - implementation, communication and effectiveness Opening remarks by Mr Lars Heikensten, Governor of the Sveriges Riksbank, at the Conference on inflation targeting: implementation, communication and effectiveness, Stockholm, 10 June 2005. *  *  *  I would like to begin by welcoming you all to Stockholm and to this conference on inflation targeting. The idea of holding this conference was hatched a couple of years ago, when Lars Svensson and I were talking about how the thinking in this area has evolved in recent years both in theory and in practice. Where do we stand today in research terms as well as in practice? And what can we learn from each other on the basis of our experiences? The fact that the conference was planned to take place this year provided added incentive, as it is ten years since Sweden’s inflation targeting regime was fully implemented in accordance with the original decision in 1993. We decided to spread the word in our respective networks: Lars on the academic side and I on the practical side. We are delighted that you, our colleagues and friends, have accepted our invitation, and believe we can look forward to a rewarding discussion of where inflation targeting stands today and how it can be developed further. I do not think it is an exaggeration to say that monetary policy today is, on the whole, being conducted better and more prudently than ever before.
Early last year, renminbi was estimated to represent 1% of the global foreign exchanges reserves, and the share will grow. Recently, we have also started to see interests in SDR bonds, with the inaugural issuance by the World Bank in China’s domestic bond market, followed by subsequent interests from commercial entities. Having this seminar thus at this juncture is indeed very timely. Uneven global growth with gravity shifting to Asia, particularly China For the past couple of years, the global economy had softened, with a marked slowdown observed throughout both the developed and emerging economies. The International Monetary Fund (IMF) recently revised their global growth forecast to 3.1% for 2016, from 3.2% previously, reflecting softer-than-expected growth in advanced economies and the impact of Brexit. Global trade continued to be subdued, with the World Trade Organization (WTO) expecting only a 1.7% expansion in 2016, marking the slowest pace of global trade growth since the global financial crisis. While China is also contending with moderation in growth during its economic transition, it continued to become the largest contributor to global growth. The gravity centre of global growth has for now, shifted to emerging economies, particularly Asia. China’s slowdown is not all negative – as China’s economic transformation, through various efforts to restructure its economy and internationalise its markets, are important towards a more sustainable path of development. Furthermore, a 6.7% growth rate is an economic performance many would aspire to.