Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Europe > Norway

You are looking at 1 - 10 of 27 items for :

  • Type: Journal Issue x
  • Financial crises x
Clear All Modify Search
Cover IMF Working Papers
Currencies of External Balance Sheets
Mr. Cian Allen
,
Deepali Gautam
, and
Luciana Juvenal
This paper assembles a comprehensive dataset of the currency composition of countries’ external balance sheets for 50 economies over the period 1990–2020. We document the following findings: (i) the US dollar and the euro still dominate global external balance sheets; (ii) there were striking changes in the currency composition across countries since the 1990s, with many emerging markets having moved from short to long positions in foreign currency, thus moving away from the so-called “original sin”; (iii) financial and tradeweighted exchange rates are weakly correlated, suggesting the commonly used trade indices do not adequately reflect the wealth effects of currency movements, and (iv) the large wealth transfers across countries during COVID-19 and the global financial crises increased global imbalances in the former, and reduced them in the latter.
Keywords:
currency composition; international investment position; foreign currency exposure; wealth effect; currency movement; currency exposure; debt liability; currency mismatch risk; pound sterling; Currencies; Exchange rates; Global financial crisis of 2008-2009; Financial statements; Global
Cover IMF Staff Country Reports
Finland: Financial Sector Assessment Program-Technical Note on Crisis Management and Resolution
International Monetary Fund. Monetary and Capital Markets Department
This technical note focuses on Crisis Management and Resolution for the Finland Financial Sector Assessment Program. These recent developments reinforce the need for full operational readiness in the Finnish authorities’ crisis management arrangements. The authorities have made progress in developing crisis management capabilities and procedures, as well as gathering practical experience from recent events. Enhancing crisis management capacity within and between authorities is essential to ensure effective implementation in a coordinated manner of agreed crisis management plans, including for bank resolution. The authorities should increase the centralization of the coordination of the authorities’ respective preparation for, as well as management of, future crises in the Crisis Management Cooperation Group. On deposit guarantee arrangements, the Finnish Financial Stability Authority Deposit Guarantee Fund should ensure that it has sufficient funds under its direct control to ensure its financial autonomy, including through strengthened backstop funding arrangements.
Keywords:
implementing Resolution tool; crisis simulation exercise; EU bank recovery; resolution planning; C. authority crisis management capability; Crisis management; Bank resolution framework; Bank resolution; Crisis resolution; Baltics; Global
Cover Staff Climate Notes
How to Cut Methane Emissions
Ian W.H. Parry
,
Mr. Simon Black
,
Danielle N Minnett
,
Mr. Victor Mylonas
, and
Nate Vernon
Limiting global warming to 1.5 to 2°C above preindustrial levels requires rapid cuts in greenhouse gas emissions. This includes methane, which has an outsized impact on temperatures. To date, 125 countries have pledged to cut global methane emissions by 30 percent by 2030. This Note provides background on methane emission sources, presents practical fiscal policy options to cut emissions, and assesses impacts. Putting a price on methane, ideally through a fee, would reduce emissions efficiently, and can be administratively straightforward for extractives industries and, in some cases, agriculture. Policies could also include revenue-neutral ‘feebates’ that use fees on dirtier polluters to subsidize cleaner producers. A $70 methane fee among large economies would align 2030 emissions with 2oC. Most cuts would be in extractives and abatement costs would be equivalent to just 0.1 percent of GDP. Costs are larger in certain developing countries, implying climate finance could be a key element of a global agreement on a minimum methane price.
Keywords:
Climate change mitigation; methane emissions; Global Methane Pledge; carbon pricing; methane tax; extractives; agriculture; design issues; border methane adjustment; international price floor; IMF staff Climate note; methane emission; IMF staff Climate Note 2022/008; IMF analysis; Greenhouse gas emissions; Natural gas sector; Agricultural sector; Agricultural commodities; Global
Cover IMF Working Papers
Revisiting the Monetary Transmission Mechanism Through an Industry-Level Differential Approach
Sangyup Choi
,
Tim Willems
, and
Seung Yong Yoo
We combine industry-level data on output and prices with monetary policy shock estimates for 105 countries to analyze how the effects of monetary policy vary with industry characteristics. Next to being interesting in their own right, our findings are informative on the importance of various transmission mechanisms (as they are thought to vary systematically with the included characteristics). Results suggest that monetary contractions reduce output by more in industries featuring assets that are more difficult to collateralize, consistent with the credit channel, followed by industries producing durables, as predicted by the interest rate channel. The credit channel is stronger during bad times as well as in countries with lower levels of financial development, in line with financial accelerator logic. We do not find support for the cost channel of monetary policy, nor for a channel running via exports. Our database (containing estimated monetary policy shocks for over 170 countries) may be of independent interest to researchers.
Keywords:
Monetary policy transmission; Industry growth; Financial frictions; Asymmetry in transmissions; balance sheet channel; channel of monetary policy; differential approach; IMF working papers; monetary policy stance; Financial statements; Central bank policy rate; Exchange rates; Monetary tightening; Export fluctuations; Global; credit channel; monetary policy shock; effects of monetary policy; x MPS; shock series; Credit; Financial sector development
Cover IMF Working Papers
Does a Wealth Tax Improve Equality of Opportunity? Evidence from Norway
Kristoffer Berg
and
Mr. Shafik Hebous
Does parental wealth inequality impact next generation labor income inequality? And does a tax on parental wealth affect the labor income distribution of the next generation? We tackle both questions empirically using detailed intergenerational data from Norway, focusing on effects on wages rather than capital income. Results suggest that a net wealth of NOK 1 million increases wages of the children by NOK 14,000. Children of wealthy parents also have a higher labor income mobility. The estimated hypothetical wage distribution without the wealth tax is more unequal. Moreover, suggestive evidence indicates parental wealth is associated with higher labor risk taking.
Keywords:
Wealth Tax; Equality of Opportunity; Parental Wealth; Income Mobility; Inequality; Redistribution; labor income dispersion; wealth tax tax rate; counterfactual income distribution; Wages; Income; Income distribution; Capital income
Cover IMF Staff Country Reports
Norway: Financial Sector Assessment Program-Technical Note-Financial Safety Nets
International Monetary Fund. Monetary and Capital Markets Department
Norway has made substantial progress in strengthening its framework for financial crisis management and bank safety nets since the 2015 FSAP. The Norwegian authorities have implemented the EU framework. The Bank Recovery and Resolution Directive (BRRD) has been transposed into the Norwegian legal framework mainly by amendments to the Financial Institutions and Financial Groups Act and accompanying regulations. Finanstilsynet (the Financial Supervisory Authority of Norway, FSA) has been designated as Norway’s resolution authority. Resolution financing options were broadened by establishing a resolution fund. While the Deposit Guarantee Scheme Directive (DGSD) has yet to be brought into the European Economic Area (EEA) agreement, Norway has, in fact, already transposed it into the Norwegian law. This provides the Norwegian authorities with a broadened and detailed regulatory framework for dealing with weak banks.
Keywords:
ISCR; CR; government stabilization tool; financial crisis; FSA decision; FSA resolution function; FSA valuation; FSA's resolution; government backstop; government employee protection; government funding; government indemnity; government support; resolution framework; resolution authority; resolution fund; resolution authorities; Financial stability assessment; Bank resolution framework; Bank resolution; Crisis management; Crisis resolution; Global; Europe
Cover IMF Working Papers
The Dynamics of Non-Performing Loans during Banking Crises: A New Database
Mr. Anil Ari
,
Sophia Chen
, and
Mr. Lev Ratnovski
This paper presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990. The data show similarities across crises during NPL build-ups but less so during NPL resolutions. We find a close relationship between NPL problems—elevated and unresolved NPLs—and the severity of post-crisis recessions. A machine learning approach identifies a set of pre-crisis predictors of NPL problems related to weak macroeconomic, institutional, corporate, and banking sector conditions. Our findings suggest that reducing pre-crisis vulnerabilities and promptly addressing NPL problems during a crisis are important for post-crisis output recovery.
Keywords:
WP; NPL resolution; peak npls; NPL dynamics; elevated npls; NPL ratio; peak NPL; elevated NPL; banking crisis; Nonperforming loans; Banking crises; Loans; Global; Asia and Pacific; Europe
Cover IMF Working Papers
Covered Interest Parity Deviations: Macrofinancial Determinants
Mr. Eugenio M Cerutti
,
Mr. Maurice Obstfeld
, and
Haonan Zhou
For about three decades until the Global Financial Crisis (GFC), Covered Interest Parity (CIP) appeared to hold quite closely—even as a broad macroeconomic relationship applying to daily or weekly data. Not only have CIP deviations significantly increased since the GFC, but potential macrofinancial drivers of the variation in CIP deviations have also become significant. The variation in CIP deviations seems to be associated with multiple factors, not only regulatory changes. Most of these do not display a uniform importance across currency pairs and time, and some are associated with possible temporary considerations (such as asynchronous monetary policy cycles).
Keywords:
WP; U.S. dollar; cross-currency basis; cross-currency dollar basis; basis calculation; Covered Interest Parity; Interest Rate Differentials; Forward FX Market; dollar strength; investment option; time-series regression; dollar appreciation; Interest rate parity; Currencies; Global financial crisis of 2008-2009; Interbank rates; Money markets; Global
Cover IMF Staff Country Reports
Finland: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper summarizes Nordea’s operations and business model; the macroeconomic and prudential implications of the move; and policy responses taken so far. The IMF staff’s assessment is that banking supervision in the euro area has improved significantly following the creation of the Single Supervisory Mechanism, which should mitigate potential risks from Nordea’s move; meanwhile, the Nordic authorities have done much, in conjunction with the European Central Bank, to ensure that potential gaps and fragmentation across national jurisdictions are avoided. The resolution framework is designed to prevent taxpayers having to bail out banks, but is new, and work on building the crisis preparedness of euro area banks is still under way. The banking union is not yet complete, details of the backstop for the Single Resolution Fund need to be finalized and a common euro area deposit insurance should be made fully operational. At the same time, Nordea is also operating in non-euro area member states—maintaining cooperation between euro area and noneuro area institutions remains important.
Keywords:
ISCR; CR; bank; Finland; O-SII buffer; capital requirement; banking group Nordea; Denmark A/S; Nordea's liquidity ratios; banking union; Nordea's depositor; Nordea's operation; Bank resolution framework; Systemic risk; Liquidity requirements; Deposit insurance; Bank resolution; Global; Baltics
Cover IMF Staff Country Reports
Norway: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper describes wages and competitiveness in Norway. Norway may have to downwardly revise its expectations for wage growth if it is to avoid a significant loss of competitiveness and manage the transition to a less oil-dependent economy. Norway was able to afford very high wage growth in the past (notwithstanding the noted challenges in several sectors) thanks to good fortune in its terms of trade. Going forward, it would be prudent not to count on being fortunate twice: wage moderation would help build resilience in case of less favorable trends in international prices. It would also help facilitate the needed transition out of oil by supporting sectors that did not benefit from past terms of trade gains. Communication from the government can continue to help in managing public expectations. Fiscal policy plays a key role in promoting competitiveness and containing the spending effect of Dutch Disease. After a prolonged expansion of fiscal policy—partly enabled by large valuation gains of the sovereign wealth fund—it is now appropriate to gradually start tightening fiscal policy. The ongoing up-cycle provides an ideal setting to get started on structural consolidation, which will ultimately be needed to face to address aging pressures.
Keywords:
ISCR; CR; Norway; house price; GDP; financial asset; IMF staff estimate; terms of trade gain; IFNW signal; mainland GDP; Housing prices; Asset prices; Wages; Asset bubbles; Housing; Global