Skingsley: The importance of the inflation target
On Tuesday, Cecilia Skingsley will participate in a seminar on pay formation arranged by the Swedish Association of Industrial Employers as part of Skogsnäringsveckan (Forestry Industry Week), an event that will be held at Münchenbryggeriet in Stockholm.
Ms Skingsley will speak about the importance of inflation rising towards the target.
"The inflation target is a cornerstone of Swedish economic policy that the participants in the economy must be able to rely on. It creates stable game rules and contributes to good, long-term and sustainable growth."
In her presentation, she will point out how the inflation target has contributed to a more stable development of wages and higher real wages than during the more volatile environment of the 1970s and 1980s.
The Riksbank is conducting a highly expansionary monetary policy in order to safeguard the inflation target.
"By holding the repo rate very low we are creating the conditions required for inflation to rise towards the target. We are also prepared to take further measures if necessary."
Follow the link to see the slides Cecilia Skingsley will show during her presentation at Skogsnäringsveckan.
