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Today's Must-Must-Read: Lars E.O. Svennson: Riksbank Deputy Governor Jansson Again Tries to Defend the Indefensible... - Washington Center for Equitable Growth
It seems that it is Jansson that should look at the facts. Jansson’s previous attempts to defend Riksbank policy, including his strange suggestion that the tightening was not motived by concerns about household debt and housing prices, have been discussed here, here, and here. The cost and benefit of the Riksbank’s leaning against the wind because of concerns about household debt are examined here (with the use of the Riksbank’s own estimates, the cost can be shown to be about 250 times the benefit).