Inflation targeting--some theory with main focus on practice *.

Norway has had an inflation target for monetary policy since March 2001 This article explains on what account and how an inflation targeting regime was introduced.

In a number of countries, including Norway, short-term interest rates are now the lowest for generations. Views upon monetary policy in Norway have changed since the last time interest rates were real low, in the postwar period up to the mid-1950s. As part of the measures taken in February 1955 Norges Bank increased the discount rate, which had remained unchanged since the war, from 25 for cent to 3.5 per cent In his annual address, central