In the wake of the global financial and economic crisis, the Swedish central bank aggressively cut interest rates and introduced an array of unconventional policy measures. This helped limit the depth and length of the recession and facilitated a strong recovery. Moreover, the Riksbank has successfully maintained low and stable inflation, and longer-term inflation expectations are well anchored, notwithstanding occasional communication problems. While the financial sector experienced stress, in part due to bank exposures to the Baltic countries, it coped well on the whole. However, there is room to improve financial sector regulation and to revisit the financial supervision framework.