Pursuits
Forecasting Errors Reveal Swedish Riksbank’s Fall From Grace
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Sweden’s central bank has gone from best to worst among its peers at forecasting inflation.
The errors can be traced back to 2010. That’s when policy makers, led by Governor Stefan Ingves, started raising rates in the middle of Europe’s worst economic crisis since WWII. Ingves said at the time the Riksbank was fighting the risk of an overheated housing market.