| Description |
1 online resource (31 pages) : illustrations |
| Series |
IMF working paper, 2227-8885 ; WP/97/34 |
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IMF working paper ; WP/97/34.
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| Summary |
In Sweden, as in the case of the United Kingdom, inflation targeting emerged as a response to the collapse of the nominal exchange rate anchor in November 1992. The Riksbank's inflation target--consumer price inflation of 2 percent, with a tolerance range of 1 percentage point--was announced on January 1993, but became operational only from 1995 onwards. This gap between announcement and effective implementation was to take account of the time lags between monetary policy action and its eventual impact on the final target. The targeted measure in Sweden is consumer price inflation, which includes both mortgage interest payments, and the effects of changes in indirect taxes and subsidies. Thus, the Riksbank chose a "headline" measure of inflation as its target, rather than some "underlying" measure, as has been the case in other countries with inflation targets-for instance, the U.K.'s targeted measure excludes mortgage interest payments, and New Zealand's makes special allowances for terms of trade shocks and changes in indirect taxes. The Riksbank's choice of consumer price inflation as the targeted measure was motivated by the public's familiarity with this measure, and the gains in credibility to be had from the transparency of the targeted measure. Moreover, the range around the central inflation target was perceived as partly playing the role of accommodating stochastic shocks. The Riksbank's monetary policy actions under this new framework-adapting the policy stance in response to changing forecasts of inflation--have been regularly reported and explained in its Inflation Reports, which have been published regularly since October 1993 |
| Bibliography |
Includes bibliographical references (pages 30-31) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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English |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Monetary policy -- Sweden
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Inflation (Finance) -- Sweden
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Economic indicators -- Sweden
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Economic indicators
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Inflation (Finance)
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Monetary policy
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MONETARY POLICY.
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INFLATION.
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ECONOMIC INDICATORS.
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SWEDEN.
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Sweden
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| Form |
Electronic book
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| Author |
Ramaswamy, Ramana
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Zettergren, Göran
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International Monetary Fund. European I Department.
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| ISBN |
1283570297 |
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9781283570299 |
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145189273X |
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9781451892734 |
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1462341985 |
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9781462341986 |
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145199253X |
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9781451992533 |
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9786613882745 |
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6613882747 |
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9781451978926 |
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1451978928 |
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