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(1)

THE PURPOSE AND SCOPE OF MONETARY POLICY

GOVERNOR ØYSTEIN OLSEN

CME, 26 October 2017

(2)

Section 1-2 Norges Bank’s purpose – the Commission’s proposal

(1) The purpose of Norges Bank is to maintain monetary

stability and promote the stability of the financial system and an efficient and secure payment system.

(2) The Bank shall otherwise contribute to high and stable

output and employment.

(3)

Emergence of inflation targeting

3

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

NZL (1990)

CAN (1991)

UK (1992)

SWE (1993)

AUS (1993)

US (1996)

ISR (1997)

CZE (1998)

POL (1998)

KOR (1998)

EUR (1999)

SUI (2000)

NOR (2001)

HUN (2001)

JPN (2006)

Tolerance band / target range Point target

Source: Norges Bank

Inflation targets in selected countries

(4)

Low and stable inflation

-2 0 2 4 6 8 10 12

CPI

5-year moving average

Inflation target

(5)

Number of employees in Norges Bank

0 200 400 600 800 1000 1200 1400

1995 1998 2001 2004 2007 2010 2013 2016

Norges Bank Investment Management

Norges Bank Central Banking Operations

Source: Norges Bank 5

(6)

THE PURPOSE AND SCOPE OF MONETARY POLICY

GOVERNOR ØYSTEIN OLSEN

CME, 26 October 2017

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