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målpristarget

Målpristarget is a term used in Swedish-language economic and policy discussions to describe an explicit objective to anchor or guide market prices toward a predetermined level. It can refer to a target price for a specific good or service, or to a price-level target for the overall economy. The idea is for policymakers to define the desired price path, a time horizon, and a monitoring framework, and to deploy instruments that influence supply and demand to move actual prices toward the target.

In macroeconomics, the closest formal analogue is price-level targeting, in which a central bank aims to keep

Advantages of målpristarget include reduced price volatility, improved planning for households and firms, and clearer expectations

the
price
level
on
a
specified
trajectory
over
time,
offsetting
past
deviations
as
needed.
In
sectoral
policy,
målpristarget
can
refer
to
programs
that
guarantee
a
minimum
or
fixed
price
for
producers,
such
as
agricultural
price
supports,
electricity
price
schemes,
or
other
public
interventions
designed
to
reduce
price
volatility
and
provide
income
certainty.
about
future
prices.
Disadvantages
include
potential
fiscal
cost,
market
distortions,
and
the
risk
that
targets
become
credible
only
if
policymakers
sustain
their
commitment.
The
feasibility
of
målpristarget
depends
on
credible
policy
design
and
effective
institutions.
Related
concepts
include
inflation
targeting,
price-level
targeting,
commodity
price
stabilization,
and
price
controls.