Norway's Gjedrem on inflation targeting

In a speech 'Flexible inflation targeting' given on 29 March, Svein Gjedrem of Norges Bank said external cyclical developments and events have had considerable implications for developments in the Norwegian economy.

"The international upturn came to a halt in 2000. The bubbles in the equity markets burst. Many years of high investment had led to excess capacity in some industries, and unemployment increased. The terrorist attacks on 11 September 2001 put a new damper on economic activity. From

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