THE PURPOSE AND SCOPE OF MONETARY POLICY
GOVERNOR ØYSTEIN OLSEN
CME, 26 October 2017Section 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.
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
Low and stable inflation
-2 0 2 4 6 8 10 12
CPI
5-year moving average
Inflation target
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