Riksbank's Ingves: We Certainly Can Go Below -0.5%

The transcript discusses the impact of quantitative easing (QE) on the Swedish economy, including measures like lowering interest rates and purchasing government debt. It explores the possibility of further rate cuts and the conditions under which Sweden might intervene in the foreign exchange (FX) markets to prevent rapid appreciation of the Krona. The discussion also touches on the interconnectedness of global economic policies, particularly the influence of the European Central Bank (ECB) and the Federal Reserve (Fed) on Sweden's open economy.

What is the primary reason for Sweden considering further rate cuts?

• To boost exports

• To increase government debt

• To counteract the effects of QE

• To stabilize the housing market

Under what condition might the Swedish central bank intervene in the FX market?

• If the GDP growth rate exceeds 5%

• If the Krona depreciates rapidly

• If the Krona appreciates rapidly

• If inflation falls below 1%

What is the Swedish central bank's inflation target?

• 2.5%

• 2%

• 1.5%

• 1%

How does the ECB's policy potentially affect the Swedish Krona?

• It could cause the Krona to depreciate

• It could lead to a rapid appreciation of the Krona

• It has no effect on the Krona

• It stabilizes the Krona's value

Why is it important for Sweden to monitor global economic activities?

• To ensure compliance with EU regulations

• Because Sweden is a large, closed economy

• Due to Sweden's small, open economy with large capital flows

• To maintain political alliances