SNS/SHoF Finance Panel: Martin Flodén on the Riksbank’s purchases of bonds

To mitigate the effects of the Corona pandemic on the Swedish economy, the Riksbank and other central banks across the globe, have lowered interest rates. The Riksbank has also purchased different types of bonds. What are the motivations behind the purchases and what are the side effects on for instance distribution of income and wealth? And should the Riksbank take the side effects into account?

The Riksbank has, since the start of the Corona pandemic, implemented historically large expansionary measures. They have communicated that the expansionary monetary policies will remain for a long time to stimulate the economy. Critics say that the Riksbank’s purchases can contribute to increasing economic gaps in society when people with assets like real estate or stocks benefit over those without these assets.

A seminar where we discussed these issues with Deputy Governor Martin Flodén and economist Martin Nordström.

The Finance Panel is a meeting forum for the financial sector, hosted by SNS and the Swedish House of Finance. Swedish House of Finance (SHOF) at the Stockholm School of Economics is Sweden’s national research center in financial economics.

Participants

Martin Flodén, Deputy Governor at Sveriges Riksbank

Martin Nordström, Economist at Kommuninvest focusing on financial economics. His primary research interest is unconventional monetary policy and its effects on regional as well as national level.

Christina Nyman, Chief Economist at Handelsbanken

The meeting was held in Swedish and moderated by Mikael Witterblad, Head of Research Programme at SNS

Martin Flodén on the Riksbank’s purchases of bonds

Practical information

When: March 18. 13:00 - 14:00

Location: Zoom

The meeting will be conducted as a webinar in Zoom. It is open to SNS members*, SHOF, specially invited as well as press and it is free of charge. Sign up via the “Sign up here”-button. 1-2 hours before the meeting you will receive an e-mail with a link to the webinar.

Participants can ask questions during the meeting, through the function “Raise Hand”, or in writing, through “Q&A”.

*List of SNS members/Information about membership

Martin Flodén

Martin Flodén took up the post of Deputy Governor of the Riksbank on 22 May 2013 with a term of office of five years. Flodén´s term of office has been extended with six years until 21 May 2024.

Martin Flodén is professor of economics at Stockholm University. Mr Flodén has previously been a member of the Economic Council of Sweden, the Swedish Fiscal Policy Council and the Swedish Centre for Business and Policy Studies' Economic Policy Group.