Evaluation of the Riksbank’s monetary policy 2015–2024
Published:
The Committee on Finance has received Morten Ravn’s and Carolyn Wilkins’ evaluation of the Riksbank’s monetary policy 2015–2024
The last decade has been characterised by some exceptional events in the world around us, which have had a major impact on monetary policy and the Riksbank’s activities. In June 2024, the Committee on Finance therefore commissioned evaluators Morten Ravn, Professor of Economics at University College London and Carolyn Wilkins, Senior Research Scholar at Princeton University, to analyse, among other things, whether the Riksbank's monetary policy during the period 2015–2024 has been well considered, as well as the effects the conducted monetary policy has had on real economic and financial developments in Sweden during this period.
The Riksbank is highly regarded but needs to continue to develop its frameworks
Ravn and Wilkins point out in their evaluation that the Riksbank is internationally well-respected and has a deservedly good reputation for its handling of monetary policy. At the same time, the evaluators note that, with the benefit of hindsight, it is clear that there have been certain shortcomings. For example, they highlight the scale and composition of the Riksbank’s quantitative easing, insufficient risk analysis and shortcomings in the interaction between monetary and financial policy. At a general level, the evaluators consider that Sweden’s monetary policy framework needs to be reassessed. Among other things, they propose that the Riksbank should develop models to evaluate the benefits of unconventional monetary policy tools. Furthermore, coordination of the framework for financial stability needs to be strengthened.
The evaluators also note that the Swedish krona exchange rate has weakened over a long period and recommend the commissioning of a review on Sweden’s future foreign exchange reserve policies.
Ravn and Wilkins emphasise that a strength of the Swedish system is that the Riksbank is an independent institution that is regularly evaluated. According to the evaluators, the evaluation process was characterised by openness and commitment.
Evaluation is an important component of the Committee on Finance’s ongoing examination of the Riksbank’s activities. It contributes to increased transparency around conducted monetary policy and can serve as a basis for in-depth public debate on the subject.
Public hearing on the report on 17 February
The Committee on Finance is sending the evaluation for comments to the affected authorities, universities and organisations today. On 17 February, the Committee will hold a public meeting and hearing with the evaluators and the Riksbank’s Executive Board. During the spring, the Committee on Finance will consider the evaluation in report 2025/26:FiU27, with the planned date of decision in June 2026.
About the evaluators
Carolyn Wilkins is a Senior Research Scholar at Princeton University, external member of the Bank of England’s Financial Policy Committee and former Deputy Governor of the Bank of Canada. She has previously evaluated the Reserve Bank of Australia.
Morten Ravn is a Professor of Economics at University College London and conducts research, inter alia, on international macroeconomics, as well as applied and quantitative macroeconomics. He has previously been a member of the SNS Economic Policy Council.
Four previous evaluations in a more long-term perspective
This is the Committee on Finance's fifth external evaluation of the Riksbank’s monetary policy in a more long-term perspective. The most recent evaluation, for the period 2015–2020, was conducted by Patrick Honohan, former Governor of the Central Bank of Ireland and Karnit Flug, former Governor of the Bank of Israel. Before that, the Committee on Finance has commissioned evaluations of Swedish monetary policy during different periods by former Governor of the Bank of England Mervyn King, and Professors Marvin Goodfriend, Frederic Mishkin, Francesco Giavazzi, Charles Goodhart and Jean-Charles Rochet. The Committee on Finance also conducts an annual evaluation of monetary policy with the help of researchers appointed by CeMoF (the Center for Monetary Policy and Financial Stability at Stockholm University).
The Committee on Finance's examination of the Riksbank
Webcasts
The press briefing at which the report will be presented can be viewed live and-demand via the Riksdag webcast service.
Document
Riksbank evaluation, 2015–2024, Morten O. Ravn & Carolyn A. Wilkins (pdf, 3,5 MB)
The report will shortly be translated into Swedish and published on the Riksdag website as part of the Reports from the Riksdag (RFR) series.
Contact person for the media
Thomas Hagberg, Committee Secretary, Committee on Finance, telephone: +46 72 786 46 06, email: thomas.hagberg@riksdagen.se.