The Inflation Targeting Framework in Norway

Jarkko Soikkeli

No 2002/184, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; inflation target; monetary policy instrument; consumer price index; inflation-targeting central bank; nominal exchange rate; output gap; inflation targeting; monetary policy; exchange rates; inflation targeting framework; managed float; inflation expectation; monetary policy guideline; policy bias; monetary policy bias; CPI-inflation-targeting framework; monetary policy tool; inflation outlook; inflation rate; way monetary policy; Inflation; Consumer price indexes; Price stabilization; Europe (search for similar items in EconPapers)
Pages: 29
Date: 2002-11-01
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Citations: View citations in EconPapers (7)

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