Stability in the Balance – a Report on the Roles of Fiscal and Monetary Policy to the Expert Group on Public Economics

In this report to the Expert Group on Public Economics (ESO), which was previously published in Swedish (2022:3 Samspel för stabilitet), the balance between fiscal and monetary policy in Sweden is analysed. The report summarises the state of knowledge and gives both a theoretical and an empirical review of the effects of fiscal and monetary policy. The authors also discuss the appropriate division of responsibilities between fiscal and monetary policy under new economic conditions and call for clear guidelines regarding the role of fiscal policy in business cycle stabilisation. Since the original publication of this report in Swedish, facts and diagrams have been updated to include more recent data.