Swedish economists add voices to criticism of leaning against the wind

Photo by David Lundberg
Sveriges Riksbank. Photo by David Lundberg.

The case for 'leaning against the wind' received another blow today (October 13), as Sveriges Riksbank deputy governor Martin Flodén added to the mounting scepticism towards using interest rates to address financial stability risks.

Sweden's policy rate would need to be "considerably higher" than it is now to tackle the problems of rising debt and house prices in the country, Flodén argued, which would mean "a greater risk that inflation will remain below the target".

His comments echoed those of

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