Per Jansson: Is it time to review the division of roles in macroeconomic policy?

Speech by Mr Per Jansson, Deputy Governor of the Sveriges Riksbank, at the Sveriges Riksbank, Stockholm, 8 December 2021.

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

Central bank speech  | 
09 December 2021

Accompanying slides

Sometimes, developments can make you start pondering somewhat larger and more fundamental issues than you might usually do. This is how it has been for me recently. The question I would like to address today is whether it might be time for us to modify our view of the appropriate division of roles in macroeconomic policy, by which I mean our overall fiscal and monetary policy. I am not entirely sure of the answer myself, although I am inclined to believe that it is something we should probably do. In this talk, I will try to explain my preliminary and probably rather unfinished thoughts.

What I am quite sure of, however, is that we have reached a point where it is time for us to start discussing what an appropriate division of macroeconomic roles would be. I am glad to say that the number of articles touching upon the subject has increased recently, and I hope that this speech will contribute further to this discussion.

But let me take a step back and start from scratch.