Riksbank’s Jansson says he favours higher inflation target

Photo: Sveriges Riksbank

In an ultra-loose policy framework, a higher inflation target could allow Sveriges Riksbank to help the economy overcome the next recession, deputy governor Per Jansson said on December 4.

Jansson thinks increasing the target to 3–4% from 2% would loosen the constraints on Swedish monetary policy. “The inflation-targeting policy has functioned well for a long time, and problems only arose when there was difficulty making policy sufficiently expansionary, as a result of the lower bound, after

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