Vad är penningpolitik?

Vad är penningpolitik?


We know that the Riksbank
conducts monetary policy- -but let’s take a closer look. What is monetary policy
and how does it affect me? It means that the Riksbank
sets an interest rate, the repo rate- -which in turn impacts inflation. Why is that, Christina?
To put it plainly- -by altering the repo rate,
the Riksbank influences- -the level of activity
in the economy- -in order to achieve
an inflation target of 2 %. The ”economy” that
Christina mentioned- -is households and companies. Households offer labour and savings
to companies and banks. They get wages
and interest in return. Companies sell products
and services to households… …the amount depends on the cost
of these products and services. The higher the cost of living,
the less people spend. The opposite applies to companies.
The more they earn- -the more they produce and sell. These two meet and
prices reach a level- -where households demand
as much as companies produce. The Riksbank’s task
is to create stability- -where prices rise by 2 % per year- -influencing economic activity
by means of the repo rate… …or the ”interest rate weapon”. Why does the Riksbank
use the ”interest rate weapon”? High and variable inflation
creates uncertainty. Households won’t know
what price they should pay- -and companies won’t know
what price to set. Companies may see rising prices
as a reason to increase production. Only to realise that prices increased
across the whole economy… It makes planning difficult
for companies. They may not recruit new staff- -which in turn affects
economic growth. Another disadvantage with
a sudden rise in inflation is- -that long-term wage contracts
will lag behind inflation. Wages won’t rise
as fast as prices. Yes, and those who borrow
gain more than those who save. Both loans and savings decrease
in value when inflation is high. Let’s summarise then… The Riksbank’s best contribution- -for favourable economic
growth is- -to try to keep inflation
low and stable. Yes, that’s right.
How is that done? The Executive Board meets
several times per year- -to discuss monetary policy. The six Board members decide
on the repo interest rate- -based on forecasts for the future. Just like weather forecasts- -you’re never quite sure
well in advance. To make forecasts on future
economic growth- -and in the long-run, inflation- -the Riksbank analyses fluctuations
in supply and demand… …how the labour market
and wage formation works… …changes in the financial market
and what’s going on in the world. A decrease in interest rates
won’t be noticed immediately. Consumers won’t start spending and
companies won’t invest immediately. It will take a while longer
to impact prices. Since a change in the repo rate
does not have an immediate effect- -the Riksbank must base its decisions
on estimated economic growth. The Executive Board doesn’t just
set the present repo interest rate- -they forecast the repo rate for the
future – a so-called repo rate path. They’re letting us know the expected
path for future interest rates? Exactly, so that inflation
stays at 2 %. I get it, Christina. Thanks!

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