A parliamentary commission of inquiry should be appointed to review the role of the Riksbank and interest rate policy, according the Riksdag Committee on Finance.
“We have agreed on a broad review of all the important issues regarding the Riksbank. The only exceptions are the foreign currency reserve and asset management, where we instead welcome suggestions,” Fredrik Olovsson, the Social Democratic chair of the Committee, has said.
He told Dagens Nyheter that macroprudential supervision would not be under review either.
Every figure of significance for Sweden’s economic and monetary policy was present in the Riksdag yesterday for the open hearing on Marvin Goodfriend and Mervyn King’s review of the Riksbank’s monetary policy.
Lord King’s message was clear, “House prices have increased by 15%. Growth is 4%. It is not the time to be complacent.” Referring to the situation in which the Swedish Financial Supervisory Authority (FSA) has been given responsibility for a debt ceiling, but cannot act, he said it was “bizarre”. The authority needs clarification from the government about what further measures it can carry out to counteract household debt.
Finance Minister Magdalena Andersson said the Ministry of Finance is examining the issue. Mervyn King’s view is that the government ought to make the decision and then commission the authority to achieve the target.