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Sveriges penningpolitik 2015-22. En analys av Riksbankens expansiva penningpolitik, i högkonjunktur och under COVID-19 pandemin

Akhondipour Salehabad, Sara LU (2024) NEKP01 20241
Department of Economics
Abstract
The purpose of the expansionary monetary policy pursued by the Riksbank in 2015–22 was to stimulate the economy and increase the excessively low inflation, in a situation where interest rates were lowered to zero. A common criticism that the Riksbank has received is that the negative policy rate in combination with quantitative easing was a mistake. I analyzed the consequences of expansionary monetary policy on inflation and its impact on the economy. Based on data from Sweden during 1993-22, I found evidence that expansionary monetary policy is not an appropriate policy to conduct during booms and when the interest rate is low. The results also show that the costs of the policy, in order for the Riksbank to be able to pursue expansionary... (More)
The purpose of the expansionary monetary policy pursued by the Riksbank in 2015–22 was to stimulate the economy and increase the excessively low inflation, in a situation where interest rates were lowered to zero. A common criticism that the Riksbank has received is that the negative policy rate in combination with quantitative easing was a mistake. I analyzed the consequences of expansionary monetary policy on inflation and its impact on the economy. Based on data from Sweden during 1993-22, I found evidence that expansionary monetary policy is not an appropriate policy to conduct during booms and when the interest rate is low. The results also show that the costs of the policy, in order for the Riksbank to be able to pursue expansionary monetary policy, exceeded the profits that the said policy brought to the economy. The results indicate that inflation increases to an insignificant effect and an expansionary monetary policy becomes the basis for increased financial instability, which cannot be slowed down by regulation. The results of the empirical study support that quantitative easing is not a good monetary policy tool, during booms, and should only be used as a crisis tool. (Less)
Please use this url to cite or link to this publication:
author
Akhondipour Salehabad, Sara LU
supervisor
organization
alternative title
Sweden's expansionary monetary policy 2015-22. An analysis of the Riksbank's expansionary monetary policy, in boom times and during the COVID-19 pandemic
course
NEKP01 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
quantitative easing, the Riksbank, expansionary monetary policy, inflation target
language
Swedish
id
9162720
date added to LUP
2024-10-01 13:17:52
date last changed
2024-10-01 13:17:52
@misc{9162720,
  abstract     = {{The purpose of the expansionary monetary policy pursued by the Riksbank in 2015–22 was to stimulate the economy and increase the excessively low inflation, in a situation where interest rates were lowered to zero. A common criticism that the Riksbank has received is that the negative policy rate in combination with quantitative easing was a mistake. I analyzed the consequences of expansionary monetary policy on inflation and its impact on the economy. Based on data from Sweden during 1993-22, I found evidence that expansionary monetary policy is not an appropriate policy to conduct during booms and when the interest rate is low. The results also show that the costs of the policy, in order for the Riksbank to be able to pursue expansionary monetary policy, exceeded the profits that the said policy brought to the economy. The results indicate that inflation increases to an insignificant effect and an expansionary monetary policy becomes the basis for increased financial instability, which cannot be slowed down by regulation. The results of the empirical study support that quantitative easing is not a good monetary policy tool, during booms, and should only be used as a crisis tool.}},
  author       = {{Akhondipour Salehabad, Sara}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Sveriges penningpolitik 2015-22. En analys av Riksbankens expansiva penningpolitik, i högkonjunktur och under COVID-19 pandemin}},
  year         = {{2024}},
}