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E. Hansen, (1997) “Exchange Rates, Non-Traded Goods, and the Terms of Trade: An Empirical Application for New Zealand,” Oxford Bulletin of Economics and Statistics No. 59
International Monetary Fund, (1996) “The Rise and Fall of Inflation—Lessons from the Postwar Experience,” World Economic Outlook, October 1996.
K. Mourn and T. Eika (1998) “Pengepolitikk som virkemiddel I dagens konjunktursituasjon,” Økonomiske Analyser 2/98, Statistics Norway.
J. Qvigstad, “Norwegian Traditions and International Trends,” in A. Christiansen and J. Qvigstad eds. Choosing a Monetary Policy Target, Scandinavian University Press, Oslo 1997
L. Svensson, “Exchange Rate Target or Inflation Target,” in A. Christiansen and J. Qvigstad eds. Choosing a Monetary Policy Target, Scandinavian University Press, Oslo 1997
Prepared by Alun Thomas.
This section is based on J. Qvigstad, “Norwegian traditions and international trends,” in A. Christiansen and J. Qvigstad eds. Choosing a monetary policy target Scandinavian University Press, Oslo 1997
The monetary policy guidelines announced in a Royal Decree in May, 1994 indicated that monetary policy was to be aimed at maintaining a stable exchange rate of the krone against European currencies, based on the range of the exchange rate maintained since the krone was floated on December 10, 1992. These guidelines are still in effect.
The euro differs from the ECU in excluding the Danish and Swedish kroner and UK pound from its basket of currencies.
Over the past two decades the cyclical position in Norway has diverged from the cyclical position in the euro zone, due in part to the importance of Norway’s oil sector (Figure 7).
In addition, in contrast with targeting a monetary aggregate, it is able to deal with sudden changes in velocity because it does not rely on a stable money-inflation relationship.
See in particular, “The monetary transmission mechanism in Sweden” Selected Issues Sweden 1997.
Partly in response to criticism that the actual inflation rate has come below the desired inflation target band in recent months, Statistics Sweden has begun publishing this measure of the underlying inflation rate and is in the process of refining it.