Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210342 
Year of Publication: 
2017
Series/Report no.: 
Staff Memo No. 8/2017
Publisher: 
Norges Bank, Oslo
Abstract: 
This paper explains the basic mechanisms of Norges Bank's core model for monetary policy analysis and forecasting (NEMO). NEMO has recently been extended with an oil sector to incorporate important channels of shocks to the Norwegian economy. We show how the effects of a change in the oil price depends on whether the price change is due to demand or supply factors in the international economy. Other extensions of the model include a more detailed modeling of the foreign sector. The paper also uses NEMO to highlight important driving forces of the Norwegian economy after the fall in the oil price. We demonstrate that the model has a reasonable empirical fit compared to VAR models.
Subjects: 
DSGE
monetary policy
JEL: 
E12
E52
G01
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-998-2
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report
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