And nor is it clear how the Riksbank and its Executive board should manage questions where national legislation may be in conflict with EU legislation. The Government’s proposal for a new Sveriges Riksbank Act will thus make it more difficult for the Riksbank to rapidly, flexibly and efficiently implement measures when needed – and thereby increase the risks to the Swedish economy. If the proposal becomes a reality, it will hamper the Riksbank’s, and ultimately the state’s, capacity to meet the challenges brought by the new financial environment. This is unfortunate, as the Swedish krona is currently subject to competition in several respects. The Swedish krona needs to continue being an efficient and generally-accepted means of payment so that the Riksbank can continue to deliver financial stability and attain the inflation target. References Alsterlind J., H. Erikson, M. Sandström and D. Vestin (2015), ”How can government bond purchases make monetary policy more expansionary?”, Economic Commentaries, No. 12, Sveriges Riksbank. Apel, M. and C.-A. Claussen (2012), "Monetary policy, interest rates and risk-taking", Economic Review, pp. 2, Sveriges Riksbank. Arner, D., R. Auer, and J. Frost (2020), ”Stablecoins: risks, potential and regulation”, BIS Working paper, No. 905. Armelius, H., C. A. Claussen and A. Reslow (2020), “Withering cash: Is Sweden ahead of the curve or just special?”, Sveriges Riksbank Working paper, No. 393. Auer, R., G. Cornelli and J. Frost (2020), “Rise of the central bank digital currencies: drivers, approaches and technologies”, BIS Working paper, No. 880. 25 [35]  Bagehot, W. (1873), Lombard Street: H.S. King, London.

Scenarios however, are not projections, predictions or preferences but rather it provides a way of making sense of uncertainties and in addition it challenges our assumptions about what the future holds. Scenario building today is synonymous with thinking broadly and more freely about a problem, enlarging the frames of reference and involving different worldviews, rather than seeing a situation from a single perspective. Essentially scenario planning interventions have been most useful in supporting the construction of multiple frames of future states of possibilities. The process of scenario planning enhances the evaluation and integration of information and promotes contingency planning. Scenarios are also important for risk management. As risk is inherent in any business activity the framework becomes a useful tool in risk assessment and management. Most of all a major risk in the current environment is the lack of preparedness for how the environment might change and for the new challenges that may emerge. To attempt to predict these changes in any specific manner in this environment would be highly speculative. The risk management process therefore involves preparing for, rather than attempting to predict the change. This would promote an increased level of preparedness to cope with the inevitable changes. Scenarios also help to connect strategies and action plans to our visions. Using scenarios will essentially widen our perspectives, increase our understanding of the issues and developments. It also allows us to see opportunities that we may otherwise miss. New developments emerging would be seen from different angles and perspectives.