TY  - JOUR
AU  - Svensson,Lars E.O.
TI  - The Swedish Experience of an Inflation Target
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4985
PY  - 1995
Y2  - January 1995
UR  - http://www.nber.org/papers/w4985
L1  - http://www.nber.org/papers/w4985.pdf
N1  - Author contact info:
Lars E.O. Svensson
Sveriges Riksbank
SE-103 37 Stockholm
SWEDEN
Tel: +46 8 787 0107
Fax: +46 8 21 0531
E-Mail: lars.svensson@iies.su.se
AB  - The paper gives a brief account of the Swedish experience of an inflation target in a floating exchange rate regime; identifies, documents and discusses the current problems in Swedish monetary policy and their origins; considers what can be done to remedy the problems; and draws some general conclusions.  The two main current problems are the lack of credibility of the target and the significant risk that the target will be missed.  The reasons for the lack of credibility include the fiscal situation, the institutional setup of monetary policy, the political division about monetary policy, and the insufficient transparency of and commitment to the current inflation- targeting policy.
ER  -