Monetary policy of Sweden 214951 217588326 2008-06-06T18:31:06Z 81.105.243.17 The '''Monetary policy of Sweden''' is decided by [[Sveriges Riksbank]], the central bank of [[Sweden]]. The [[monetary policy]] is instrumental in determining how the Swedish [[currency]], is valued. The main events in the monetary history of the ''[[Swedish krona|Krona]]'' are: *Introduction of the [[Swedish krona|Krona]], based on the [[gold standard]] on [[May 5]], [[1873]]. (1 kg of gold = 2480 Kronor) *The tie to gold is abolished on [[August 2]], [[1914]]. *The tie to gold is ''de facto'' re-established in November [[1922]]. *The tie to gold is ''de jure'' re-established on [[April 1]], [[1924]] *The tie to gold is abolished once more on [[September 27]], [[1931]]. Floating exchange rate. *A tie to the [[Pound sterling|British Pound]] is introduced in June [[1933]]. (1 GBP = 19.40 SEK) *Tied to the [[United States dollar|US Dollar]] on [[August 28]], [[1939]]. (1 USD = 4.20 SEK) *A controlled appreciation of 14.3 %, against all other currencies and gold on [[July 13]], [[1946]]. (1 USD = 3.60 SEK) *A controlled depreciation of 30.5 % against the USD on [[September 19]], [[1949]]. (1 USD = 5.17 SEK) *Membership of the [[International Monetary Fund]] and part of the [[Bretton Woods system]] on [[August 31]], [[1951]]. *A controlled depreciation of 1.0 % against gold and a 7.5 % appreciation against the USD on [[December 21]], [[1971]]. *A controlled depreciation of 5.0 % against gold and a 5.6 % appreciation against the USD on [[February 16]], [[1973]]. *Membership in the [[Europe]]an "[[Snake in the tunnel|currency snake]]" in March [[1973]]. *Adjustment of the exchange rates within the "snake"; a controlled 3 % depreciation against the [[Deutsche Mark|DEM]] on [[October 18]], [[1976]]. *Adjustment of the exchange rates within the "snake"; a controlled 6 % depreciation against the DEM on [[April 4]], [[1977]]. *Sweden leaves the "snake". A controlled 10 % depreciation against a trade based "currency basket" on [[August 29]], [[1977]]. *A controlled depreciation of 10 % against the "currency basket" on [[September 14]], [[1981]]. *A controlled depreciation of 16 % against the "currency basket" on [[October 8]], [[1982]]. *A tie to the [[European Currency Unit]] is introduced unilaterally on [[May 17]], [[1991]]. (1 ECU = 7.40 SEK) *Floating exchange rate on [[November 19]], [[1992]] ''See also: [[Scandinavian Monetary Union]]'' == References == * In [[Swedish language|Swedish]]: "[http://www.ne.su.se/ed/pdf/28-1-lj.pdf Från guldmyntfot till inflationsmål]" by [[Lars Jonung]], [[Ekonomisk debatt]] #1, 2000 ==1992==<!-- This section is linked from [[Black Wednesday]] --> In late 1992 (September 14, Monday) the [[British pound]] began a steep decline that made it "leave" the "[[Exchange Rate Mechanism]]" on the Wednesday of that week. At the same time the Swedish currency began to decline, the first reaction from the central bank was to try and keep the current fixed exchange rates in place, and they set a target for their equivalent to the [[federal funds rate]] ("[[marginal rate]]") at 500%. The bank began to sell short term government securities in large amounts but soon realized that market forces were strong, so they lowered their target rate, and let everyone sell what they wanted to sell, and the country saw a large selling of SEK, and SEK denominated papers. Between September 1992 and February 1993 the Swedish currency "TCW" index went from 100 to 125 (20% fall), while the British currency XBP index fell from 200 to 142 (29% fall). ===Flows and levels=== *British pound **[http://stockcharts.com/def/servlet/SC.web?c=$XBP,uu<nowiki>[500,a]dalannay[d1990101][p][i]</nowiki>] **[http://stockcharts.com/def/servlet/SC.web?c=$XBP,uu<nowiki>[500,a]dalannay[d19920101,19940101][p][i]</nowiki>] *Swedish krona **[http://www.riksbank.com/templates/ItemList.aspx?id=12160] *Swedish central bank target rate **[http://www.riksbank.com/templates/Page.aspx?id=12188] == See also == * [[History of copper in Sweden]] == External links == *[http://www.riksbanken.se/ Sveriges Riksbank] *[http://www.scb.se/templates/tableOrChart____24751.asp Liabilities as a percentage of GDP from 1970] {{Central Bank}} [[Category:Monetary policy]] [[Category:Economy of Sweden]] [[category:History of Sweden]]