Persson: Monetary policy and the labour market
Thank you for the invitation to participate in this LO region's annual general meeting! My speech will concern developments in the labour market and the significance of monetary policy for unemployment and employment. Introduction There is a common fallacy that there is a tradeoff between inflation and unemployment; that one can buy slightly lower unemployment at the cost of a higher inflation rate. I would argue instead that it is quite the reverse: Stable prices provide a good foundation for the economy. Low inflation reduces uncertainty for consumers and firms; it becomes easier to