sweden

Krona Slides Most In Two Months As Riksbank Minutes Add To Central Bank Confusion

So, the Riksbank. That's the folks in Sweden. You know, the people Paul Krugman called "sadomonetarists” in a truly cartoonish 2014 blog post. Those would be the same "sadomonetarists" who abandoned their sadomonetaristic tendencies to follow Mario Draghi down the accommodative policy, ZIRP-to-NIRP, QE rabbit hole in order to ensure the krona didn't soar in the face of ECB easing. And the same Riksbank that got a giant housing bubble as a reward for their efforts to replicate Draghi and appease Krugman. Well, as noted here earlier this month, the Riksbank removed their easing bias amid the global DM central banker hawkish tilt (basically, Sweden's monetary policy is tethered to the ECB either way, so if Draghi is easing, they have to ease and if Draghi is getting hawkish, well so is the Riksbank). On Tuesday we got the minutes from the July 3 meeting and the market was watching closely in light of the hot inflation print that last week pushed the krona sharply higher. Amusingly, the minutes show that the Riksbank is still hyper-concerned with inflation (not surprising coming from them, but the juxtaposition with last week's inflation print is funny). Here are the highligh
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