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Sweden can be trailblazer for global rate-setters

Swaha Pattanaik 

Swaha Pattanaik Small countries can blaze a trail in central banking. New Zealand was an early adopter of inflation-targeting, which has become a global norm. Now Sweden has the chance to begin breaking the stranglehold of this orthodoxy. Sweeping reforms of its central bank, the Riksbank, are recommended in a parliament-commissioned report written by former Bank of England Governor Mervyn King and US economist Marvin Goodfriend. They say the Riksbank needs more leeway to deviate from its inflation target if necessary, as well as greater powers to promote financial stability. They also criticise economic ...

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First Published: Tue, January 19 2016. 21:31 IST