Economic review no 4 2002
The Riksbank's quarterly journal, Economic Review, deals with subjects in fields of relevance to the central bank. The fourth issue of 2002 is published today and contains three articles: one on the art of targeting inflation, one on the IRB approach in the Basel Committee's proposal for new capital adequacy rules, and one on reformed management of international financial crises. It also contains the Riksbank's statement regarding the Swedish Government Official Report "Stabilisation policy in the monetary union" (SOU 2002:16) as well as the summary of the report. The Swedish version of the journal, Penning- och valutapolitik, was published in December 2002.
The art of targeting inflation
Although low inflation has been the primary objective for Swedish monetary policy since 1993, it was not until 1999 that a price stability objective was implemented as the law of the land. In their article the authors, Governor Lars Heikensten and Anders Vredin, Head of the Monetary Policy Department, describe monetary policy-making in Sweden today. They also discuss some strategic problems the new regime has faced.
The IRB approach in the Basel Committee's proposal for new capital adequacy rules: some simulation-based illustrations
The IRB (Internal Ratings Based) approach for determining banks' capital adequacy is one of the cornerstones of the Basel Committee's proposed revision of the Basel Accord for banking regulation. In the article, Tor Jacobson, Head of the Research Department, and Jesper Lindé and Kasper Roszbach of the Research Department, present the ideas behind, and the essential features of, the IRB approach and describe the consequences of a number of its components for the banks' capital adequacy.
Reformed management of international financial crises
The international financial crises of recent decades have led to a far-reaching debate on how various types of crisis should be managed. This debate has intensified since the International Monetary Fund presented a proposal for improved management of sovereign debt in 2001. The author, Ola Melander, currently studying at the London School of Economics, gives an account of the various motives and proposals for improved management of liquidity and solvency crises.
The Riksbank's statement regarding the report "Stabilisation policy in the monetary union"
Lastly, a statement is given on the Riksbank's views on the Swedish Government Official Report SOU 2002:16 of the Committee investigating stabilisation policy for full employment in the event of Swedish participation in Stage Three of EMU. Robert Boije, from the Monetary Policy Department, Jörgen Eklund from the Secretariat of the Executive Board, and Anders Borg have written the statement under the guidance of Deputy Governor Villy Bergström. All of the members of the Executive Board support the views in the statement.
The journal is available on our website under the headings Publications/Economic Review. It can be downloaded in pdf format. It can also be collected at the main entrance to the Riksbank at Brunkebergstorg 11 or ordered by e-mail: forradet@riksbank.se,
fax: +46 8 787 0526 or telephone: +46 8 787 0100.
Questions can be answered by Kerstin Wallmark, telephone +46 8 787 01 50.
