A parliamentary report into Sweden's monetary policy says that while the Riksbank compares favourably with other central banks in terms of monetary policy, the persistent undershooting of its inflation target in recent years means there is room for improvement in performance.

The report, which reviews Swedish monetary policy from 1995 to 2005, was written by Frederic S Mishkin, a New York-based academic and member of the Federal Reserve Board, and Francesco Giavazzi, a professor of Bocconi