Horizon and implementation
Norges Bank operates a flexible inflation targeting regime, so that weight is given to both variability in inflation and variability in output and employment.
Monetary policy influences the economy with long and variable lags. Norges Bank sets the interest rate with a view to stabilising inflation close to the target in the medium term. The relevant horizon will depend on disturbances to which the economy is exposed and how they affect the path for inflation and the real economy ahead.
Norges Bank's Occasional Papers no. 34, Chapter 7.3 and 7.4 (pdf, 145 kB)
Norges Bank's submission of 27 March 2001 to the Ministry of Finance
Trade-offs in monetary policy, article in Economic Bulletin 2/2004 (pdf, 35 kB)