Per Jansson: Contemplations of an interest-rate dove and inflation hawk

Speech by Mr Per Jansson, Deputy Governor of the Sveriges Riksbank, at Danske Bank, Stockholm, 3 December 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
18 December 2019

Those who follow the media reporting on monetary policy have probably noted that I have been considered the most dovish member of the Riksbank's Executive Board for some time. By this, I mean that I am considered to be the one who, at least for the time being, is inclined to conduct the most expansionary policy. For anyone unfamiliar with the terminology, the opposite of a dove is a hawk, some-one who instead advocates a tighter monetary policy. An alternative terminology that is common in theoretical models is that a hawkish policy instead attaches considerable importance to the inflation target and gives less weight to other things. So actually, as I think it is justified to prioritise the inflation target and confidence in it, I could also be considered a hawk. More precisely, I could be de-scribed as a combination of an inflation hawk and an interest-rate dove.

Describing the orientation of monetary policy-makers in ornithological terms is ra-ther practical. Apparently, however, it is not entirely uncomplicated and misses some subtle differences. I would therefore like to start by elaborating on my view of current monetary policy and my reasoning at the most recent monetary policy meetings.