Lundvall, H. (2020) “What is driving the global trend towards lower real interest rates?”, Sveriges Riksbank Economic Review, 2020:1. Nessén, M. (2016), “Commentary: The case for unencumbering interest rate policy at the zero bound”, Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole 2016. Rajan, R. (2005), “Has financial development made the world riskier?”, in The Greenspan Era: Lessons for the Future, A symposium sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming. Final report of the Riksbank Committee (2020), "A new Sveriges Riksbank Act", SOU 2019:46. Smets, F. (2013), “Financial stability and monetary policy: How closely interlinked?”, Sveriges Riksbank Economic Review, 2013:3. Stein, J. (2013), ”Overheating in Credit Markets: Origins, Measurement and Policy Responses,” speech at the Board of Governors of the Federal Reserve System. Stock, J. and M. Watson (2002), “Has the business cycle changed and why?”, NBER Macroeconomics Annual, Vol. 17. Svensson, L. (2012), ”Utmaningar för Riksbanken − penningpolitik och finansiell stabilitet”, (Challenges for the Riksbank − monetary policy and financial stability), Ekonomisk debatt, no. 12. Svensson, L. (2014), “Inflation targeting and leaning against the wind”, International Journal of Central Banking, June 2014. Svensson, L. (2017), “Cost-benefit analysis of leaning against the wind”, Journal of Monetary Economics, Vol. 90. Woodford, M. (2012), “Monetary policy and financial stability”, Sveriges Riksbank Economic Review, 2012:1. 27 [30]  Figure 1. CPIF and CPIF excluding energy and forecasts Per cent  Note. Annual percentage change. Sources: Statistics Sweden and the Riksbank. Figure 2. Long-term inflation expectations Per cent  Note.

According to Smets, all of this indicated that financial stability should be an explicit objective of monetary policy, but that it should be used as a last resort in situations where macroprudential policy and other regulations are not fully successful. The American economist Michael Woodford illustrated in a simple model why monetary policy should in certain situations take account of financial imbalances, even if this  14 See Stock and Watson (2002). In the international economic policy discussion, "the great moderation" or "the  great calm" usually refers to the period from the mid-1980s until 2008. In Sweden, economic development did not become more stable until a little way into the 1990s. See also Hansson, Nessén and Vredin (2018). 15 See Rajan (2005). 16 See Borio and Lowe (2003). 17 See Jonsson and Moran (2014), who show in a model that a positive supply shock can lead to subdued prices, while the output gap and credit gap rise. 18 See Smets (2013) and Woodford (2012). See also the report “Rethinking Monetary Policy” by Eichengreen et al. (2011), which discusses the implications of the financial crisis for central banks. 13 [30]  may mean less favourable target fulfilment for price stability and macroeconomic stability in the short term. Other economists, such as Lars Svensson, argued that monetary policy should continue to focus solely on price stability and macroeconomic stability.19 He said that monetary policy and policies to promote financial stability are distinct and separate policy areas with different objectives, different means and different responsible authorities.