SNS/SHoF Finance Panel: Martin Flodén on the Riksbank’s purchases of bonds
To mitigate the effects of the Corona pandemic on the Swedish economy, the Riksbank and other central banks across the globe, have lowered interest rates. The Riksbank has also purchased different types of bonds. What are the motivations behind the purchases and what are the side effects on for instance distribution of income and wealth? And should the Riksbank take the side effects into account?
The Riksbank has, since the start of the Corona pandemic, implemented historically large expansionary measures. They have communicated that the expansionary monetary policies will remain for a long time to stimulate the economy. Critics say that the Riksbank’s purchases can contribute to increasing economic gaps in society when people with assets like real estate or stocks benefit over those without these assets.
A seminar where we discussed these issues with Deputy Governor Martin Flodén and economist Martin Nordström.
The Finance Panel is a meeting forum for the financial sector, hosted by SNS and the Swedish House of Finance. Swedish House of Finance (SHOF) at the Stockholm School of Economics is Sweden’s national research center in financial economics.
Martin Flodén, Deputy Governor at Sveriges Riksbank
Martin Nordström, Economist at Kommuninvest focusing on financial economics. His primary research interest is unconventional monetary policy and its effects on regional as well as national level.
Christina Nyman, Chief Economist at Handelsbanken
The meeting was held in Swedish and moderated by Mikael Witterblad, Head of Research Programme at SNS