This study will examine the Swedish monetary policy debate, where there is anongoing discussion regarding the monetary policy role and financial policy role. Furthermore,formulating how the central bank's objectives should look is a classic economic question. Thestudy aims to investigate whether there is a political dimension to the arguments of theparliamentary parties' proposals. Furthermore, if those proposals related to a classic conflict inSwedish politics between the left and the right. The debate has got a new fuel after thefinancial crises of 2007-2008. The central bank around the world accepted substantialmonetary policy stimulus to get the economy spinning again. This crisis exemplified howvulnerable the global economy market is; for a long time, an outspread fear had happenedwhen the de economy slowed down. The Riksbank is critical to the new proposal becausethey think the separation of power and monetary tools they can use will hurt their ability toguide the Swedish economy when the next crisis comes. The Riksdag soon vote on thismatter. Formulating the monetary policy is essential for this study and understanding how theSwedish political parties have viewed inflation and why they delegated this assignmentbecause the credit is more significant to fulfilling the inflation target. The study also discusseswhat happens when an inflation chock hits the economy and how different a central bank whita strict inflation target meet the challenge and pushes the inflation down faster to meet theinflation target. When a central bank has inflation and unemployment, it takes longer to getthe inflation back to the inflation target because they also must fulfil the unemployment goal.This study shows a political dimension in the monetary policy debate, where political partiesall want the Parliament to have a more significant role in the decision making for theParliament.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-200634 |
| Date | January 2022 |
| Creators | Vestring, Nils |
| Publisher | Umeå universitet, Statsvetenskapliga institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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