How Expensive is Norway? New International Relative Price Measures
IMF Working Papers, June 1, 2010
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- How Expensive is Norway? New International Relative Price Measures
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Bibliographic details
- Authors: Kornelia Krajnyak, Volodymyr Tulin
- Published: June 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455201167.001
Summary
- The paper derives two new measures of international relative prices for Norway.
- Developments in these new measures follow rather closely movements in the CPI-based real effective exchange rate through the 1990s, but diverge after 2000—suggesting that the costs of living in Norway relative to its trading partners have risen in the recent years more than the real effective exchange rate would indicate.
Key findings and comparisons
- Two new international relative price measures are constructed for Norway.
- Relationship with CPI-based real effective exchange rate:
- Followed closely through the 1990s.
- Diverged after 2000.
- Implication drawn:
- Costs of living in Norway relative to its trading partners have risen in recent years more than the real effective exchange rate would indicate.
Content in this bundle
- How Expensive is Norway? New International Relative Price Measures; by Volodymyr