To coincide with the release of the new Bank data sets, we want to see what novel insights they can yield. The visualisation could be a static description of an interesting pattern or relationship in the data or the creation of an interactive app. Entrants are free to focus on whatever they like, as long as it employs some of the newly available data in some way. The second competition is for the best research paper – the “One Bank research” competition. We are particularly keen to engage early career researchers across the academic world. For our inaugural competition, the paper should be on some aspect of “The interaction between microprudential, macroprudential, and/or monetary policy”. The winners of each competition will be decided by separate judging panels of Bank staff and external academics. The prize for both competitions will be £ Further details on how to apply are now live on our website. Conclusion Economies are complex, dynamic and constantly evolving systems, underpinned by social interactions and behavioural change; shaped by fundamental forces like technology and globalisation; and supported – or at times disrupted – by finance. Policymakers need research to help understand these phenomena and to craft our responses to them. And research can make some of its most effective contributions by addressing the priorities of policymakers.
Another variant of an asymmetrical disturbance is that asset prices – the property market and stock exchange – due to a too strong economic development are forced up for a short while. However, in situations such as this, the required tightening can usually be managed with the help of fiscal policy. Naturally, stabilisation policy via the budget has its limitations since it only works with delay and is dependent on many other long-term considerations. In addition, the Stability and Growth Pact, which Sweden is included in whether or not a member of the EMU, provides a limitation on increased government expenses. The most important “shock absorber” even if we do not join the EMU, but especially if we do, is that wages can adapt to changes in the competition situation, i.e. that there is a high degree of flexibility and pliability in wage formation. It would thus be possible to avoid an increase in unemployment during an adaptation period. Naturally, it can be more difficult, politically, to achieve this than to adapt an exchange rate. A single monetary policy therefore requires greater discipline from labour market parties since the connection between wage costs/inflation and monetary policy will be less obvious than is the case today. The krona The reasoning I have pursued so far has assumed that the exchange rate actually functions as a shock absorber: that the floating exchange rate adapts to competitiveness and the business climate, i.e.