The role of academics in monetary policy : a study of Swedish infl ation targeting 1

The way in which monetary policy is conducted has changed considerably in recent decades. The process can be divided into two phases. The fi rst involved changes in the general formation of policy (a change of re gime), whereby low and stable infl ation was given higher priority than before and central banks were made more independent. The second phase involves changes that in various respects have resulted in further developments of the new regime. Starting from experience of the Swedis h infl ation-targeting regime, this article describes the role academic research has played for the way in which monetary policy is currently formed. The article also presents a picture of the interplay between researchers and practitioners in the course of this process of change.