Why has Swedish Inflation been Persistently Low?

Felix Hüfner

Organisation for Economic Co-operation and Development

关键词: Riksbank;    inflation target;    core inflation;    Sweden;    monetary policy;    inflation;   

DOI  :  https://doi.org/10.1787/173338505703

学科分类：社会科学、人文和艺术（综合）

来源: OECD iLibrary

【 摘 要 】

Average inflation in Sweden has been one of the lowest among European countries since the mid- 1990s. Three supply-side factors help to explain this phenomenon, all related in some sense to increased global integration. First, a shift towards imports from low-cost producing countries has resulted in falling import prices. Second, deregulation and increased product market competition with foreign companies entering the market has led to price falls in some sectors, notably in retailing. Third, wage growth has lagged productivity and kept unit labour costs down. This paper reviews these factors and analyzes the policy options for the central bank. This paper relates to the OECD Economic Survey of Sweden 2007 (www.oecd.org/eco/surveys/sweden).