Studio 12: Exclusive interview with this year's Nobel laureates in economics "Federal Reserve should accept higher inflation"

Today's Studio 12 sends the first extended interview in Swedish media with the recipients of the Prize in Economic Sciences in Memory of Alfred Nobel, Christopher A. Sims and Thomas J. Sargent. Thomas J. Sargent argues that the central banks have handled the current economic crisis relatively well. Christopher A. Sims, however, thinks that the US Federal Reserve should allow higher inflation during a period to overcome the current crisis. He states, "I believe the US central bank can do more to demonstrate that it can accept an increase in inflation above the regular target of 1.5% to 2 per cent, but the Fed has been very reluctant to pursue this type of discussion. They want to ensure that people know they are trying to keep inflation in check, but I believe that this security is counterproductive right now. If we face a renewed crisis with a deep recession, I would hope they would reconsider this commitment." You can see the entire interview at beginning 11:45 am (CET) today (9 December). For further information, please contact: Ola Samzelius, news editor, Studio 12, tel. +46 70 371 4557 Studio 12 is part of Handelsbanken TV. We monitor and analyse the most important current economic events. Follow us at: Press Release PDF: This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Handelsbanken via Thomson Reuters ONE [HUG#1570219]