IMF sees limits to Norway ‘leaning against the wind’
Fund and Norges Bank governor take differing stances
Norway ought to focus on macro-prudential tools as the primary method of tackling financial instability and not expect monetary policy to take on the role, the IMF said on May 28, at the conclusion of its Article IV consultation with the country.
"Financial stability concerns need to be addressed primarily through macro-prudential policy as a single policy rate cannot achieve multiple objectives," the IMF said.
Norges Bank explicitly uses its monetary policy to 'lean against the wind', resisting
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