Norges Bank Watch 2001: a review of inflation targeting, the Norwegian monetary regime and its institutional arrangements, and Norges Bank’s actual monetary policy and communication

Abstract

In this report we will focus on the challenges of an inflation target. The first part of the report focuses on the possibilities and limitations in a flexible inflation targeting approach. The second part focuses on the implementation of an inflation target in Norway.

The report concludes that Norges Bank has a firm and credible commitment to fulfilling the inflation target. The Bank enjoys a good communication with both the public and the financial markets. The Inflation Report, currently published three times a year, is a clear and well-written exposition of the Banks expectations and judgements and Norges Bank has demonstrated the ability to clarify its policy through articles and speech