Rajan, Raghuram G. (2005), “Has financial development made the world riskier?” Paper presented at The Greenspan Era: Lessons for the Future—A Symposium Sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, August 25–27. Scholes, Myron and Ash Alankar (2017), “What investors can teach central banks about inflation”, Opinion Markets Insight, Financial Times, 1 November. Summers, L. H. (2017), ”5 reasons why the Fed may be making a mistake”, blog post, 14 June, http://larrysummers.com/2017/06/14/5-reasons-why-the-fed-maybe-making-a-mistake/ Svensson, Lars E. O. (2017), ”Cost-benefit analysis of leaning against the wind”, Journal of Monetary Economics, vol. 90, pp. 193-213. The Economist (2017), “The Phillips curve may be broken for good”, Daily Chart, 1 November. White, William R. (2006): “Is price stability enough?”, BIS Working Papers, no 205, April. Wolf, Martin (2017), “Central banks alone cannot deliver stable finance”, Opinion Central Banks, Financial Times, 24 October. Yellen, Janet L. (2017a), Transcript of Chair Yellen’s Press Conference, 20 September. Yellen, Janet L. (2017b), “Inflation, uncertainty, and monetary policy”, speech at “Prospects for growth: Reassessing the fundamentals”, 59th Annual Meeting of the National Association for Business Economics, Cleveland, Ohio, 26 September. 16 [20]  Figure 1. Swedish inflation ’ahead of the international cycle’ Annual percentage change  Note. Inflation for Sweden is measured as the CPIF, for the US as ‘core PCE’ and for the euro area as the HICP. Sources: Bureau of Labor Statistics, U.S. Department of Labor, European Commission (Eurostat) and Statistics Sweden  17 [20]  Figure 2.

And, in Sweden, the Riksbank has indeed important functions in this context, both in preventing financial crises and tackling them should they occur. In addition, the ongoing parliamentary inquiry into the Riksbank will examine this matter and others in more detail, and I look forward to its conclusions with interest. My discussion today has centred on my view that monetary policy and the policy rate are better suited to focus on an inflation target – and that good conditions exist for them to continue to do so. Of course, monetary policy systems and frameworks do not last forever. But, so far, I consider that there are good reasons to keep the one we have. 14 [20]  References Andersson, Björn, Vesna Corbo and Mårten Löf (2015), ”Why has inflation been so low?”, Economic Review 2015:3, pp. 5–46. Blanchard, Olivier (2016), ”The US Phillips curve: Back to the 60s?”, Policy Brief No. PB16-1, Peterson Institute of International Economics, January. Borio, Claudio (2017), “Through the looking glass”, OMFIF City Lecture, London, 22 September. Borio, Claudio, Piti Disyatat, Mikael Juselius and Phurichai Rungcharoenkitkul (2017), “Monetary policy in the grip of a pincer movement”, paper presented at 21st Annual Conference of the Central Bank of Chile “Monetary policy and financial stability: Transmission mechanisms and policy implications”, Santiago, Chile, 16-17 November. Borio, Claudio and Philips Lowe (2002), “Asset prices, financial and monetary stability: exploring the nexus”, BIS Working Papers, no 114, July.