The global economy was transformed. Cross-border capital flows increased strongly and previously regulated economies were drawn into international trade. Economists reconsidered the Keynesian approach behind early postwar monetary policy. Germany gave combating inflation precedence over employment; the United States and Britain set about deregulating financial markets. The reassessment reached Sweden later than many other countries – deregulation here did not begin until the mid-1980s, followed by measures to lower inflation in the early 1990s. The credit growth that followed on from deregulation led to a financial crisis at the beginning of the 1990s.
The Riksbank abandoned the fixed exchange rate regime in November 1992 and an inflation target of two per cent became the objective of monetary policy. The new Sveriges Riksbank Act in 1999 gave the Riksbank a more independent position than before. The krona remained Sweden’s currency after a referendum rejected adopting the euro in 2003. In recent years the Riksbank’s task of ensuring the stability of the payment system has attracted greater attention.
Time axis
| 1970s |
The BrettonWoods system collapses.
Some central banks adopt a tight
monetary policy to break inflation.
|
| 1970s-80s |
Some central banks adopt a tight
monetary policy to break inflation.
|
| 1980-1 |
Dollar interest rates rise.
|
| 1982 |
The krona is devalued by 16 per cent.
Bengt Dennis is appointed Riksbank
governor.
|
| 1985 |
Former finance minister Gunnar
Sträng steps down as chairman of the
Riksbank’s governing board.
Interest controls are abolished.
|
| 1986-90 |
Exchange controls are dismantled.
|
| 1992 |
The Maastricht Treaty. The EEA
agreement comes into force.
International currency unrest. Bank
crisis in Sweden. The Riksbank
abandons the fixed exchange rate.
|
| 1993 |
The Riksbank changes to targeting
inflation.
|
| 1994 |
Urban Bäckström is appointed
Riksbank governor.
|
| 1999 |
Amended Riksbank Act increases the
Bank’s independence. Eva Srejber and
Kerstin Hessius are the first women
on the Riksbank’s Executive Board.
|
| 2002 |
Euro notes and coins are introduced.
|
| 2003 |
Lars Heikensten is appointed
Riksbank governor. Sweden’s
referendum rejects the euro.
|
| 2005 |
Stefan Ingves is appointed
Riksbank governor. |