New issue of the journal Economic Review
In the second issue of the journal Economic Review for the year 2011 we publish four articles relating to various issues in the fields of monetary policy and financial stability.
Henrik Lundvall and Andreas Westermark analyse why the natural interest rate, that is the real interest rate that is compatible with normal resource utilisation, varies over time and how it may be affected by shocks of the type noted during the financial crisis.
In their article, Gudrun Gunnarsdottir and Sofia Lindh address the need to take measures to develop the market for corporate bonds in Sweden. The authors analyse the results of interviews and the Riksbank's survey on the funding of Swedish non-financial companies and note that the market for corporate bonds will become more important if, as expected, the banks' supply of corporate loans declines, partly as a result of the new Basel III regulations.
Johannes Forss Sandahl, Mia Holmfeldt, Anders Rydén and Maria Strömqvist present an index that aims to reflect the degree of stress on those markets that are important sources of funding for Swedish banks, companies and households.
Dale Gray and Andreas Jobst describe how the theory of price-contingent contracts (option theory) can be used to analyse how risks spread between banks and the financial system, and between the financial system and the central-government's balance sheet. In their article, the authors use empirical examples of the effects of the financial crisis in the United States, the euro area and Sweden.
In the journal Economic Review, the Riksbank publishes in-depth analyses of monetary policy, financial stability, the management of the foreign currency reserve and international cooperation on economic issues and central banks' activities. As of 2011, the journal will be published exclusively on the Riksbank's website. This means that the Riksbank will no longer produce a printed version of the journal.
