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dc.contributor.authorHudson, Michaelen_US
dc.date.accessioned2012-04-12T14:17:29Z-
dc.date.available2012-04-12T14:17:29Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/56969-
dc.description.abstractFor the past generation Norway has supplied Europe and other regions with oil, taking payment in euros or dollars. It then sends nearly all this foreign exchange abroad, sequestering its oil-export receipts - which are in foreign currency - in the oil fund to invest mainly in European and US stocks and bonds. The fund now exceeds $500 billion, second in the world to that of Abu Dhabi. It is claimed that treating these savings as a mutual fund invested in a wide array of US, European, and other stocks and bonds (and now real estate) avoids domestic inflation that would result from spending more than 4 percent of the returns to this fund at home. But the experience of sovereign wealth funds in China, Singapore, and other countries has been that investing in domestic infrastructure serves to lower the cost of living and doing business, making the domestic economy more competitive, not less. This paper cites the debate that extends from US 19th-century institutional doctrine to the approach of long-time Russian Chamber of Commerce and Industry President Yevgeny Primakov to illustrate the logic behind spending central bank and other sovereign foreign-exchange returns on modernizing and upgrading the domestic economy rather than simply recycling the earnings to US and European financial markets in what looks like an increasingly risky economic environment, as these economies confront debt deflation and increasing fiscal tightness.en_US
dc.language.isoengen_US
dc.publisherLevy Economics Inst. Annandale-on-Hudson, NYen_US
dc.relation.ispartofseriesWorking paper, Levy Economics Institute 657en_US
dc.subject.jelH27en_US
dc.subject.jelH50en_US
dc.subject.jelH54en_US
dc.subject.jelH60en_US
dc.subject.ddc330en_US
dc.subject.keywordsovereign wealth fundsen_US
dc.subject.keywordNorwayen_US
dc.subject.keywordoil funden_US
dc.titleWhat does Norway get out of its oil fund, if not more strategic infrastructure investment?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn654841217en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Levy Economics Institute of Bard College

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