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
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
You can see the entire interview at tv.handelsbanken.se 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: tv.handelsbanken.se
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Source: Handelsbanken via Thomson Reuters ONE