The Riksbank published remarks by Governor Erik Thedéen from an SNS and Riksbank discussion with former Bank of Finland Governor Erkki Liikanen on central bank independence and mandates, arguing that independent central banks support a stable and prosperous economy but that independence cannot be taken for granted and must be earned. Thedéen linked the expansion of central bank independence since the 1990s to the difficulty of credibly combating high inflation in the 1970s, and argued that independence does not mean central banks are free to set their own remit, as elected officials determine the framework and central banks should not expand their tasks without political support. He said engagement on issues such as climate change, tariffs and fiscal policy initiatives depends on context and whether there is a natural link to the Riksbank’s price stability and financial stability tasks, and highlighted the role of transparency, clear explanations of decisions, and external scrutiny in keeping independence democratically anchored.
Riksbank 2025-12-01
Sweden's Riksbank Governor Thedéen calls for transparency and mandate discipline to safeguard central bank independence
Riksbank Governor Erik Thedéen emphasized the importance of central bank independence for economic stability, noting it must be earned and is not absolute. He highlighted that central banks' remits are set by elected officials and should not expand without political support. Thedéen also stressed the need for transparency and external scrutiny to maintain democratic accountability.