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The Inflation Targeting Framework in Norway

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  • Mr. Jarkko Soikkeli

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.

Suggested Citation

  • Mr. Jarkko Soikkeli, 2002. "The Inflation Targeting Framework in Norway," IMF Working Papers 2002/184, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/184
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    References listed on IDEAS

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    11. Batini, Nicoletta & Harrison, Richard & Millard, Stephen P., 2003. "Monetary policy rules for an open economy," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11), pages 2059-2094.
    12. Mr. Francisco d Nadal De Simone, 2001. "An Investigation of Output Variance Before and During Inflation Targeting," IMF Working Papers 2001/215, International Monetary Fund.
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    15. Sutherland, Alan, 2001. "Inflation Targeting in a Small Open Economy," CEPR Discussion Papers 2726, C.E.P.R. Discussion Papers.
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    Cited by:

    1. International Monetary Fund, 2008. "Constraints on the Design and Implementation of Monetary Policy in Oil Economies: The Case of Venezuela," IMF Working Papers 2008/142, International Monetary Fund.
    2. Salsa Dilla & Noer Azam Achsani & Lukytawati Anggraeni, 2017. "Do Inflation Targeting Really Reduced Exchange Rate Pass-through?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 444-452.
    3. Konstantin P. Yurchenko & Irina N. Savelyeva, 2019. "The trajectories of macroeconomic policy under the middle-income trap," Journal of New Economy, Ural State University of Economics, vol. 20(5), pages 23-41, December.
    4. Konstantin P. Yurchenko & Irina N. Savelyeva, 2020. "Restoring Russia’s resource-dependent economy: From the Dutch Disease towards economic growth," Journal of New Economy, Ural State University of Economics, vol. 21(3), pages 28-47, October.
    5. Viktor Kotlán & David Navrátil, 2003. "Inflation Targeting as a Stabilization Tool: Its Design and Performance in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 53(5-6), pages 220-242, May.
    6. Thorarinn G. Petursson, 2005. "Inflation Targeting and its Effects on Macroeconomic Performance," SUERF Studies, SUERF - The European Money and Finance Forum, number 2005/5 edited by Morten Balling, May.

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