He has published significant research in macroeconomics, especially monetary economics, international trade and general equilibrium theory.
He is a well-known proponent of price path targeting, a topic on which he published significant research.
He is also notable for advocating a slightly negative interest rate among central banks at the Riksbank in July 2009.
After studying as a Special Graduate Student in economics at the Massachusetts Institute of Technology in 1974–75, he received his Ph.D. from the Stockholm University in 1976.
Svensson was the recipient of the Great Gold Medal of the Royal Swedish Academy of Engineering Sciences in 2012.