A checklist for well-balanced monetary policy – a proposal and an illustration

Jakob Almerud, Carl Andreas Claussen and Matilda Kilström

EconStor Open Access Articles and Book Chapters, 2026, issue 2026, No 1, 53 pages

Abstract: Central banks with inflation targets often face complex trade-offs. In this article, we present a checklist that can support navigating these. The checklist consists of seven general principles. These state, for instance, that monetary policy should stabilise inflation at the target while remaining flexible, robust and predictable. Each principle is supported by more specific checkpoints. The checklist helps ensure that trade-offs are made in a systematic and transparent way, based on careful analysis. It sets clear requirements for logic and consistency and helps ensure that critical aspects are not overlooked. We demonstrate the practical application of the checklist by presenting an example of its use in a recent policy round at the Riksbank.

Keywords: Monetary policy; Flexible inflation targeting in practice; Riksbank monetary policy; Monetary policy tradeoffs; Optimal monetary policy (search for similar items in EconPapers)
JEL-codes: D81 E37 E52 E58 E61 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:344262

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