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Monetary policy and inflation in times of war
Sveriges Riksbank.ORCID iD: 0000-0001-8826-0410
2022 (English)In: Sveriges Riksbank Economic Review, E-ISSN 2001-029X, no 2, p. 65-79Article in journal (Other academic) Published
Abstract [en]

When major and unusual events such as a war occur, there is no ‘manual’ for how to act as an economic policy-maker. All wars are different – in terms of their scale and duration, their location and their impact on the world around them. Instead, one must try to find parallels with previous historical episodes and study the research literature on the economic consequences of war to see if it is possible to find common denominators. It is clear, however, that war often leads to higher inflation in one way or another. In this article, we will first briefly review what research literature has to say about the connection between war and inflation. Then we will take a look back at earlier episodes when war was associated with rising inflation in Sweden, and draw some conclusions from this.

Place, publisher, year, edition, pages
Sveriges Riksbank , 2022. no 2, p. 65-79
National Category
Economics
Research subject
Economics
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URN: urn:nbn:se:uu:diva-506088OAI: oai:DiVA.org:uu-506088DiVA, id: diva2:1773938
Available from: 2023-06-24 Created: 2023-06-24 Last updated: 2023-06-26Bibliographically approved

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