Gjedrem on monetary policy in Norway

SPEECH - In the speech 'Monetary policy in Norway' made on 17 October, Svein Gjedrem of Norges Bank said with the free flow of capital, deep capital markets and the phasing in of petroleum revenues into the Norwegian economy, inflation targeting is the appropriate regime for setting interest rates. Flexible inflation targeting both provides the economy with a nominal anchor and contributes to smoothing fluctuations in output and employment.

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