Norges Bank

Staff Memo

How much of a tailwind have we had from the weaker krone?

Author:
Bjørn Naug and Einar W. Nordbø
Series:
Staff Memo
Number:
6/2019

It is usual to assume that a weaker currency will stimulate exports and improve the balance of trade. Despite the krone's depreciation in recent years, however, exports have grown little and the non-oil trade deficit has widened. This raises questions about what effects the weaker krone has actually had. We find that exports would probably have been much lower without the depreciation of the krone. Our conclusion, therefore, is that there has been a significant tailwind.

Staff Memo inneholder utredninger og dokumentasjon skrevet av Norges Banks ansatte og andre forfattere tilknyttet Norges Bank. Synspunkter og konklusjoner i arbeidene er ikke nødvendigvis representative for Norges Bank.

ISSN 1504-2596 (online)

Published 2 May 2019 15:00
Published 2 May 2019 15:00