The Inflation Targeting Framework in Norway

Author/Editor:

Jarkko Soikkeli

Publication Date:

November 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Norway adopted an inflation targeting framework in early 2001, thus concluding its gradual but consistent move toward greater exchange rate flexibility. This paper assesses the institutional and technical design of the framework, as well as its potential implications for the practical implementation of monetary policy against the experience from selected industrial countries that had adopted inflation targeting frameworks prior to Norway. Norway's role as a commodity exporter exposed to large terms of trade shocks, and the possible consequences of newly introduced fiscal guidelines are also discussed.

Series:

Working Paper No. 2002/184

Subject:

Banking Consumer price indexes Exchange rates Foreign exchange Inflation Inflation targeting Monetary policy Price stabilization Prices

English

Publication Date:

November 1, 2002

ISBN/ISSN:

9781451859379/1018-5941

Stock No:

WPIEA1842002

Pages:

29

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