ReFIT – Review of Flexible Inflation Targeting

The aim of the research project is to explore possible improvements to the monetary policy framework in Norway.

Inflation targeting was formally introduced in Norway in 2001. Since that time, the thinking concerning monetary policy has evolved in both Norway and internationally, not least as a result of the financial crisis. In addition, Norway has been exposed to considerable changes in its terms of trade, which have in periods posed dilemmas for the conduct of monetary policy.

In 2013, Norges Bank launched a 3-year research project – ReFIT – to investigate possible improvements to the monetary policy framework. The project focuses on the following main two questions:

  • Should monetary policy take into account financial stability and, if so, how?
  • What is a good monetary policy framework for a small and open commodity-exporting economy such as Norway?

The head of the ReFIT project is Øistein Røisland. Professor Jordi Galí (Universitat Pompeu Fabra) and Professor Carl Walsh (University of California, Santa Cruz) are scientific advisers for the project.

A final report will be drawn up based on the research of ReFIT once the project has been completed. In order to shed light on the issues covered by ReFIT, a number of sub-projects have been initiated, with the participation of both internal and external economists. The results of these sub-projects will be published as Working Papers and Staff Memos as indicated below upon completion.

ReFIT research papers:

Leaning against the wind when credit bites back
Karsten R. Gerdrup, Frank Hansen, Tord Krogh and Junior Maih, 2016

When preferences for a stable interest rate become self-defeating
Ragna Alstadheim and Øistein Røisland, 2016 
Forthcoming in Journal of Money, Credit and Banking

The risk-taking channel of monetary policy in Norway
Artashes Karapetyan, 2016

Leaning against the credit cycle
Paolo Gelain, Kevin J. Lansing and Gisle J. Natvik, 2015

Notes on the underground: monetary policy in resource-rich economies
Andrea Ferrero and Martin Seneca, 2015

Monetary Policy in Oil Exporting Economies
Drago Bergholt, 2014

Published 18 August 2015 18:11