Per Jansson: Contemplations of an interest-rate dove and inflation hawk

Speech by Mr Per Jansson, Deputy Governor of the Sveriges Riksbank, at Danske Bank, Stockholm, 3 December 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Those who follow the media reporting on monetary policy have probably noted that I have been considered the most dovish member of the Riksbank's Executive Board for some time. By this, I mean that I am considered to be the one who, at least for the time being, is inclined to conduct the most expansionary policy. For anyone unfamiliar with the terminology, the opposite of a dove is a hawk, some-one who instead advocates a tighter monetary policy. An alternative terminology that is common in theoretical models is that a hawkish policy instead attaches considerable importance to the inflation target and gives less weight to other things. So actually, as I think it is justified to prioritise the inflation target and confidence in it, I could also be considered a hawk. More precisely, I could be de-scribed as a combination of an inflation hawk and an interest-rate dove.

Describing the orientation of monetary policy-makers in ornithological terms is ra-ther practical. Apparently, however, it is not entirely uncomplicated and misses some subtle differences. I would therefore like to start by elaborating on my view of current monetary policy and my reasoning at the most recent monetary policy meetings.