2026-05-22

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Göran Hjelm: Economic-Policy Interaction as a Strength for the Swedish Economy

Deputy Governor Göran Hjelm argues that clear communication and strong interaction with fiscal policy and wage formation are essential tools for the Riksbank to manage supply-driven inflation. He advocates for a flexible approach that looks through temporary inflation spikes caused by supply shocks, provided the central bank maintains credibility and strict adherence to its inflation target. Hjelm emphasizes that this coordinated strategy enhances the Riksbank's operational freedom while ensuring long-term price stability and robust economic development.

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Sweden

Sveriges Riksbank

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