banks and other financial institutions should become more consumer - oriented, instead of today ’ s greater focus on products. the increased exposure of households to the stock market calls for tailor - made plans for the life cycle that take all important risks into account. central matters here are, of course, investment horizons, how buying and selling is arranged and the degree of diversification across companies and geographical regions. another parameter is, as indicated, the morris, stephen and hyun song shin ( 1999 ) : oxford review of economic policy, vol. 15, no 3. life cycle ; the possibility of saving for the long run is restricted by how much capital is likely to be needed in the nearer future. admittedly, this process has to some extent begun already. however, the decisive steps lie ahead.

villy bergstrom : the role of the riksbank in swedish society speech by mr villy bergstrom, deputy governor of sveriges riksbank, at fristaende sparbankers forbundsstomma, held in stenungssund, on 22 may 2000. * * * in my speech today i would like to concentrate on the role of the riksbank in swedish society. i am going to begin by trying to clarify the sometimes exaggerated idea about the meaning of the riksbank having an independent position in relation to our democratically elected representatives. later in my speech, i will take up issues relating to the riksbank ’ s role in reducing the risk for financial crises and the important function of the bank system. the duties of the riksbank the riksbank is an authority subject to the riksdag. the areas of responsibility that have been delegated to us in one way or another involve ensuring that our money plays its part well in society. in order for a modern economy to function efficiently, there must be access to money that is accepted by everyone as a means of payment. it must also be possible to make payments for the enormous flows of goods and services in a developed economy in a secure and efficient way. last but not least, it is important that the country ’ s currency functions as a store of value, a demand that is met if inflation is low and predictable. stable prices reduce uncertainty when agreements about future payments are to be concluded, for instance pay agreements. another benefit that is usually emphasised is that stable prices do not create the same arbitrariness in income distribution between savers and borrowers as high inflation does. by ensuring that our money fulfils its functions, the riksbank makes its best contribution to citizens ’ welfare. this is the ultimate objective of all economic policy and monetary policy is no exception. when the value of money and financial stability are maintained, we contribute to creating good conditions for growth, which is usually considered to be an important part of welfare. however, the funds the riksbank has at its disposal cannot affect productivity growth in the long run. as there is considerable agreement that it is neither possible nor desirable to use regulations as a normal component of policy, changes of the shortest interest rate are normally the monetary policy tool available to the riksbank. our tasks have been formulated as follows ; the riksbank shall ( 1 ) maintain price stability, ( 2