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Norway's approach to monetary policy


  • Giovanni P. Olivei


The goal of monetary policy as conducted by Norges Bank is to maintain low and stable inflation. The operational target of monetary policy is explicitly defined in a consumer price inflation rate of approximately 2.5 percent over time. Norges Bank sets its interest rate instrument with a view to achieving the inflation target over a two-year horizon, and it will normally tolerate deviations of actual inflation from target that are not in excess of plus or minus 1 percentage point. In general, the direct effects on consumer prices resulting from changes in interest rates, taxes, excise duties, and extraordinary temporary circumstances shall not be taken into account.

Suggested Citation

  • Giovanni P. Olivei, 2002. "Norway's approach to monetary policy," New England Economic Review, Federal Reserve Bank of Boston, issue Q 2, pages 45-49.
  • Handle: RePEc:fip:fedbne:y:2002:i:q2:p:45-49

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    References listed on IDEAS

    1. Atsushi Miyanoya, 2000. "A Guide to Bank of Japan's Market Operations," Bank of Japan Working Paper Series Financial Markets Departm, Bank of Japan.
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    Cited by:

    1. Dawid Johannes van Lill, 2017. "Changes in the Liquidity Effect Over Time: Evidence from Four Monetary Policy Regimes," Working Papers 704, Economic Research Southern Africa.


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