IMF Working Papers

The Inflation Targeting Framework in Norway

By Jarkko Soikkeli

November 1, 2002

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Jarkko Soikkeli. The Inflation Targeting Framework in Norway, (USA: International Monetary Fund, 2002) accessed November 21, 2024
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.

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

Keywords: Consumer price index, Consumer price indexes, CPI-inflation-targeting framework, Europe, Exchange rates, Inflation, Inflation expectation, Inflation outlook, Inflation rate, Inflation target, Inflation targeting, Inflation targeting framework, Inflation-targeting central bank, Managed float, Monetary policy, Monetary policy bias, Monetary policy guideline, Monetary policy instrument, Monetary policy tool, Nominal exchange rate, Output gap, Policy bias, Price stabilization, Way monetary policy, WP

Publication Details

  • Pages:

    29

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2002/184

  • Stock No:

    WPIEA1842002

  • ISBN:

    9781451859379

  • ISSN:

    1018-5941