Is the Norwegian central bank – Norges Bank – targeting nominal GDP? Probably not, but this presentation by Norges Bank governor Øystein Olsen is nonetheless interesting.
Have a look at the graph on slide 17 of the presentation. The graph shows nominal GDP for what is called mainland Norway (“Fastlands-Norge”) which is the non-oil part of the Norwegian economy. The graph obviously is quite Market Monetarist in nature. I would certainly not argue that Norge Bank has started targeting Nominal GDP, but it is nonetheless interesting that governor Øystein have a Market Monetarist style graph in his presentation.
Related posts:
Denmark and Norway were the PIIGS of the Scandinavian Currency Union
Danish and Norwegian monetary policy failure in 1920s – lessons for today
Fear-of-floating, misallocation and the law of comparative advantages
jpirving
/ February 21, 2013They certainly have very stable nominal consumption, make of that what you will. Besides the obvious, an upside to the oil money is that the bank has lots of practice stabilizing the domestic part of a volatile export economy. They’ve been my monetary heroes since the surprise rate cut last year. Norges Bank is possible they best central bank in the world today, though I wonder how Olsen interpreted causality on the Sweden/Japan graph…
Benjamin Cole
/ February 22, 2013Every now and then I get optimistic that Market Monetarism is ruling the day..it does seem like MM is getting more and more traction…but tommorrow I may change my mind.
Ravi
/ February 22, 2013An English version of the accompanying remarks for those who are interested: http://www.bis.org/review/r130219b.pdf