Glossary
Glossary
B
Business cycles
More or less regular fluctuations in economic activity.
More or less regular fluctuations in economic activity.
C
Calendar adjustment
Means that the data have been corrected for the effect of differences in the number of working days.
Means that the data have been corrected for the effect of differences in the number of working days.
Cyclically adjusted net lending
A measure of net lending as it would be with the economy in a normal state.
A measure of net lending as it would be with the economy in a normal state.
E
Employment rate
The employment rate is the number of persons employed as a percentage of the population aged 15-74.
The employment rate is the number of persons employed as a percentage of the population aged 15-74.
Expenditure ceiling
The maximum permissible level of central-government expenditure; it thus limits how much the central government is allowed to spend each year. The Government proposes, and Parliament decides, what the limit will be. The total expenditure subject to ceiling is central-government budget expenditure exclusive of interest on central-government debt and disbursements from the old-age pension system.
The maximum permissible level of central-government expenditure; it thus limits how much the central government is allowed to spend each year. The Government proposes, and Parliament decides, what the limit will be. The total expenditure subject to ceiling is central-government budget expenditure exclusive of interest on central-government debt and disbursements from the old-age pension system.
F
Fiscal policy
The policy that affects demand via the expenditure and revenue of the general-government sector.
The policy that affects demand via the expenditure and revenue of the general-government sector.
G
General-government net lending
The revenue less the expenditure of the general-government sector.
The revenue less the expenditure of the general-government sector.
GDP (Gross Domestic Product)
The value of all goods and services produced in a country during a period of time.
The value of all goods and services produced in a country during a period of time.
GDP growth at a normal rate
A growth rate in line with its historical average. Since 1980, growth in GDP has averaged 0.5 percent per quarter, or 2.0 percent per year. High GDP growth does not automatically mean that the economy is booming (with a high level of resource utilization), or vice versa. In a recovery phase, when the economy is emerging from a slump, the rate of GDP growth will normally exceed its historical average.
A growth rate in line with its historical average. Since 1980, growth in GDP has averaged 0.5 percent per quarter, or 2.0 percent per year. High GDP growth does not automatically mean that the economy is booming (with a high level of resource utilization), or vice versa. In a recovery phase, when the economy is emerging from a slump, the rate of GDP growth will normally exceed its historical average.
H
HICP
The HICP is a Harmonized Index of Consumer Prices developed by the EU for purposes of international comparison. The principal difference between the HICP and the CPI is that the mortgage interest cost for owner occupied homes is not included in the HICP. Certain items are included in the HICP, but not in the CPI, such as expenditure on child care, elderly care, hospital care and some financial services.
The HICP is a Harmonized Index of Consumer Prices developed by the EU for purposes of international comparison. The principal difference between the HICP and the CPI is that the mortgage interest cost for owner occupied homes is not included in the HICP. Certain items are included in the HICP, but not in the CPI, such as expenditure on child care, elderly care, hospital care and some financial services.
I
Ill health
The statistics on ill health include both persons who are sick-listed (and receiving sickness allowances and sick pay, including the waiting period) and persons with disability pensions.
The statistics on ill health include both persons who are sick-listed (and receiving sickness allowances and sick pay, including the waiting period) and persons with disability pensions.
Inflation and CPI
Inflation is an increase in the general level of prices. The Consumer Price Index (CPI) measures the average change in prices of goods and services consumed by households.
Inflation is an increase in the general level of prices. The Consumer Price Index (CPI) measures the average change in prices of goods and services consumed by households.
CPIX, (previously UND1X) measure of underlying inflation, is customarily used by the Riksbank as a guide in setting monetary policy. Unlike the Consumer Price Index (CPI), the CPIX excludes mortgage interest cost for owner occupied homes and the direct effects of changes in indirect taxes and subsidies.
See figure for various measures of inflation.
L
Labour market gap
Summarizes the NIER's assessment of resource utilization on the labour market and is defined as the percentage deviation of actual hours worked from potential hours worked. The potential number of hours worked is in turn determined primarily by equilibrium unemployment and the potential labour force. Equilibrium unemployment is the level of unemployment compatible with the target rate of inflation and is dependent largely on the functioning of the labour market and of wage formation. A negative labour market gap means that there is spare labour in the economy, a situation that tends to dampen the tendency of prices and wages. A positive labour market gap means that resource utilization is strained, with accelerating prices and wages as a consequence.
Summarizes the NIER's assessment of resource utilization on the labour market and is defined as the percentage deviation of actual hours worked from potential hours worked. The potential number of hours worked is in turn determined primarily by equilibrium unemployment and the potential labour force. Equilibrium unemployment is the level of unemployment compatible with the target rate of inflation and is dependent largely on the functioning of the labour market and of wage formation. A negative labour market gap means that there is spare labour in the economy, a situation that tends to dampen the tendency of prices and wages. A positive labour market gap means that resource utilization is strained, with accelerating prices and wages as a consequence.
Labour force
The labour force is the total number of persons employed and officially unemployed.
M
Monetary policy
Primarily about setting the repo rate in order to affect demand in order to achieve a stable development of prices.
Primarily about setting the repo rate in order to affect demand in order to achieve a stable development of prices.
R
Repo rate
The interest rate at which banks can borrow or lend money at the Riksbank for seven days. Decisions about the repo rate are made by the Executive Board of the Riksbank.
The interest rate at which banks can borrow or lend money at the Riksbank for seven days. Decisions about the repo rate are made by the Executive Board of the Riksbank.
Resource utilization
The level of resource utilization in the economy is a measure of the degree to which the production factors of labour and capital are being put to use. Resource utilization is reflected, for example, in the responses to the Business Tendency Survey questions on labour shortages and utilization of existing capacity, as well as the statistics of the Labour Market Board and Statistics Sweden on vacancies and the number unemployed. A limited labour shortage and weak capacity utilization at firms indicate low resource utilization, which in turn tends to dampen inflationary pressure.
The level of resource utilization in the economy is a measure of the degree to which the production factors of labour and capital are being put to use. Resource utilization is reflected, for example, in the responses to the Business Tendency Survey questions on labour shortages and utilization of existing capacity, as well as the statistics of the Labour Market Board and Statistics Sweden on vacancies and the number unemployed. A limited labour shortage and weak capacity utilization at firms indicate low resource utilization, which in turn tends to dampen inflationary pressure.
S
Seasonally adjustment
Data are seasonally adjusted to smooth out variations regularly recurring during the year.
Data are seasonally adjusted to smooth out variations regularly recurring during the year.
Stabilization policy
Consists of the monetary- and fiscal-policy measures taken to affect the aggregate demand in the economy. The purpose is to dampen the cyclical fluctuations of the economy, thus simultaneously maintaining stable rates of inflation and low unemployment.
Consists of the monetary- and fiscal-policy measures taken to affect the aggregate demand in the economy. The purpose is to dampen the cyclical fluctuations of the economy, thus simultaneously maintaining stable rates of inflation and low unemployment.
U
Unemployed
The officially unemployed are persons without work but willing and able to work and looking for a job. Often measured as a percentage of the labour force.
The officially unemployed are persons without work but willing and able to work and looking for a job. Often measured as a percentage of the labour force.