Andreassen, Harald Magnus De Grauwe, Paul Solheim, Haakon Thøgersen, Øystein
Year of Publication:
CESifo Working Paper 608
We evaluate the policy of flexible inflation targeting implemented by the Norges Bank since March 2001. We discuss the reasons why the real interest rates are significantly higher in Norway than in the rest of Europe. Finally we propose some institutional changes that can improve the policy making process.