Regulatory Alerts2026-07-02
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Same goals, different trade-offs? Norges Bank and the Riksbank after the high-inflation period
Jakob Almerud and Anna Seim of the Riksbank analyze the divergent inflation paths in Sweden and Norway post-2022, where Norwegian inflation remains above target despite higher policy rates, unlike Sweden's. They suggest Norges Bank's policy has been less contractionary, prioritizing real economic stabilization more than the Riksbank, potentially influenced by a higher neutral rate in Norway or differences in central bank mandates. The authors find no support for higher inflation-fighting costs in Norway and conclude that the design of monetary policy mandates may have contributed to the distinct strategies.
Topics
monetary
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