Riksbank Governor hires PR firm to defend against Svensson, et al.
Yesterday I did a post expressing amusement at the way Lars Svensson demolished the reasoning of the hawks at the Riksbank. Now Riksbank Governor Ingves has hired a PR firm for 140,000 sk (a bit over $20,000 US$) to defend their action.
Ingves hire help to explain the rise in interest rates
Riksbank Governor Stefan Ingves interest rate increases has been questioned by everyone from finance minister to bank forecasters.
Express can today reveal that he hired a star consultant to defend the interest rate increases.
Cost: 140 000.
Riksbank Governor Stefan Ingves has been under fire recently. Internally, the Bank, he has met with resistance by the so-called doves – Lars EO Svensson and Karolina Ekholm – who time and again expressed its reservations about interest rate hikes and sharp interest rate forecasts.
Harbinger of more hikes
Ingves and his interest rate hawks, however, been able to raise rates and to announce a continued sharp increases in interest rates since the position of the Executive Board are 4-2 in hökarnas favor.The Riksbank’s monetary policy has also been questioned externally.
In conjunction with the budget presentation, it was clear that the Finance Minister Anders Borg did not believe in Ingves interest rate forecast. Borg expects significantly lower rate in the future – just as the so-called räntemarknden.
When Ingves later told of the latest interest rate decision and the fact that the Riksbank has now lowered the interest rate forecast noted Expressen that he was accompanied by a PR consultant Willy Silberstein.
I’m afraid $20,000 is way too little to get a consultant capable of rebutting Svensson’s devastating logic.
HT: Stefan Elfwing
Tags: Sweden
14. November 2011 at 19:17
“I’m afraid $20,000 is way too little to get a consultant capable of rebutting Svensson’s devastating logic.”
Not with tight monetary policy!
14. November 2011 at 20:30
Imagine if Frank Morris (Boston Fed president for 20 years – 1968-88) was a member of the FOMC today! This is what my comenter Ryan Sanchez dug up:
http://thefaintofheart.wordpress.com/2011/11/15/pearls-of-wisdom-from-long-ago/
15. November 2011 at 09:14
Slightly off this topic but on the mainstream. Is Britain getting MM? See this article in FT 14th NOv by Prof Nicholas CRafts entitled Fiscal Stimulus Is Not Our Only OPtion
http://www.ft.com/cms/s/0/f8498e3e-0eb9-11e1-b83c-00144feabdc0.html#axzz1disZEkON
15. November 2011 at 12:17
Johnleemk, That’s a good one.
Marcus. Great find. I’ll link to it at some point.
W le B, I wouldn’t call that MM, not all proposals for monetary stimulus are MM. That seems more like new Keynesianism.
15. November 2011 at 15:12
The Riksbank is a pretty good CB as far as CBs go but they do have a bias to undershoot on their inflation target. At least thats what my masters thesis adviser says:
http://translate.google.se/translate?sl=sv&tl=en&js=n&prev=_t&hl=sv&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.dn.se%2Fdebatt%2Fproblemet-ar-ett-helt-annat-an-vad-mortvik-och-zettergren-tar-upp&act=url
Google translate does a poor job but you can get the gist.
15. November 2011 at 15:52
I could give them something good enough for the pundits, for $20,000.
16. November 2011 at 10:55
Justin, Yes, they aren’t perfect.
Bob, I’m not sure how Austrianism would sell in Sweden.