Gjedrem on economic perspectives

In a speech on 'Economic perspectives' given on 19 February, Svein Gjedrem of Norges Bank said a sharp rise in asset prices and debt accumulation may pose a risk to economic stability. With a view to mitigating this risk, it will be appropriate in some situations to apply a somewhat longer-than-normal time horizon than two years to attain the inflation target.

"A flexible inflation targeting regime reduces the possibility of exposing households to a double shock in the form of higher unemployment

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