Inside the world's oldest central bank, a new debate is ragingover a dilemma facing monetary authorities around the globe.

Policy makers at Sweden's 344-year-old Riksbank and elsewhereare arguing about how far they can look beyond their price mandatesand focus instead on economic growth, employment or financialstability when inflation threats are either not pressing or deemedto be passing. This marks a shift from three decades in whichcentral bankers battled inflation, an enemy they understood so wellthat most made it their singular emphasis in the 1990s.

“There are lots of things central banks are worried about at themoment, and inflation is not the highest priority,” said StephenKing, chief economist at HSBC Holdings Plc in London and a formerU.K. Treasury official. “As long as people believe central banksare committed over the longer term to price stability, there isleeway to play around with other objectives.”