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Economic Commentary

Price Stability and the Swedish Monetary Experiment

During the last two decades, the consumer price index has more than tripled. This article examines the feasibility and appropriateness of establishing a direct, price-index target as the primary objective of U.S. monetary policy, and notes the results of the Swedish Riksbank’s experiment with such an approach during the 1930s.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Black, Susan A., and William T. Gavin. 1990. “Price Stability and the Swedish Monetary Experiment.” Federal Reserve Bank of Cleveland, Economic Commentary 12/15/1990.