Heikensten on monetary policy and potential growth

In a speech on 'Monetary policy and potential growth' Lars Heikensten of the Sveriges Riksbank said a high long-term growth rate is one of the most important objectives of economic policy. The Riksbank has earlier spoken of a potential growth rate in the economy in the interval of 2-2.5 per cent. If the current trends for the labour supply persist, it is likely that we will have to assume in the longer term a potential growth rate closer to 2 per cent than 2.5 per cent.

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