Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268057 
Year of Publication: 
2022
Series/Report no.: 
Discussion Papers No. 981
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
We identify variables that help explain the persistent weakness of the Norwegian krone since 2016 within a fully simultaneous model of the underlying process driving the krone-euro exchange rate. In addition to a set of fundamental variables we consider non-traditional explanatory variables related to an exchange rate premium, inspired by several claims to insights made by market participants. The weak Norwegian krone seems to be largely attributable to factors related to the risk premium, such as the declining importance of petroleum in the Norwegian economy, a relative reduction in FDI in Norway and a fall in oil industry-specic share prices.
Subjects: 
Exchange rate
Foreign exchange rate premium
Cointegration
VAR-analysis
JEL: 
C22
C32
F31
F41
G15
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.