Norges Bank

ReFIT – Review of Flexible Inflation Targeting

The aim of the research project was 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 focused 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 was Øistein Røisland. Professor Jordi Galí (Universitat Pompeu Fabra) and Professor Carl Walsh (University of California, Santa Cruz) were scientific advisers for the project.

A final report has been published containing the research results and a discussion of the issues covered by ReFIT.

Two conferences/workshops were organised by the ReFIT project:


  • Alstadheim, R. and C. Blandhol (2017) «Domestic Monetary Policy, Uncertainty Shocks and Capital Flows in a Small Open Economy – the Case of Norway». Forthcoming Norges Bank Working Paper.
  • Alstadheim, R, Ø. Robstad and N. H. Vonen (2017) «Financial Imbalances and Monetary Policy in Norway». Forthcoming Norges Bank Working Paper.
  • Alstadheim, R. and Ø. Røisland (2017) «When preferences for a stable interest rate become self-defeating». Journal of Money, Credit and Banking 49, side 393–415 (Norges Bank Working Paper 8/2016).
  • Bergholt, D. (2017) «Optimal Price Stability for Commodity Producers: The Role of Terms of Trade Shocks». Forthcoming Norges Bank Working Paper.
  • Bergholt, D. and V. H. Larsen (2016) «Business cycles in an oil economy: Lessons from Norway». Norges Bank Working Paper 16/2016.
  • Bergholt, D., V. H. Larsen and M. Seneca (2017) «Business cycles in an oil economy». BIS Working Papers No 618.
  • Brubakk, L. and Ø. Røisland (2017) «Inflation Targeting and Alternatives: The Trade-Off between Flexilibility and Accountability». Forthcoming Norges Bank Working Paper.
  • Ellingsen, J. (2017) «Relationships between nominal GDP and financial variables in OECD countries». Norges Bank Staff Memo 4/2017.
  • Ferrero, A. and M. Seneca (2015) «Notes on the underground: monetary policy in resource-rich economies». Norges Bank Working Paper 2/2015.
  • Furlanetto, F. and Ø. Robstad (2016) «Immigration and the macroeconomy: some new empirical evidence». Norges Bank Working Paper 18/2016.
  • Gelain, P., K. J. Lansing and G. J. Natvik (2015) «Leaning against the credit cycle». Norges Bank Working Paper 4/2015.
  • Gerdrup, K. R., F. Hansen, T. Krogh and J. Maih (2016) «Leaning against the wind when credit bites back». Norges Bank Working Paper 9/2016 (Forthcoming in International Journal of Central Banking).
  • Hagelund, K. (2016) Produksjonsgap og finansielle variable». Norges Bank Staff Memo 14/2016.
  • Husabø, E. (2017) «Indikatorar for underliggjande inflasjon i Noreg» Forthcoming Norges Bank Staff Memo.
  • Karapetyan, A. (2016) «The risk-taking channel of monetary policy in Norway». Norges Bank Working Paper 5/2016.
  • Midthjell, N. L. (2017) «Are Norwegian Inflation Expectations well-anchored? ». Forthcoming Norges Bank Working Paper.
  • Natvik, G. and T. Sveen (2017) «Immigration, Capacity Utilisation and Monetary Policy». Forthcoming  Norges Bank Working Paper.
  • Røisland, Ø. (2017) «On the Interplay between Monetary Policy and Macroprudential Policy: A Simple Analytical Framework». Forthcoming Norges Bank Working Paper