• By   The Scandinavian country is rich in oil and gas and its
overall fiscal position remains enviable with no net debt and
among the highest levels of economic output per capita in the
world.  But to set monetary policy, Norway’s central bank,
Norges Bank, prefers to look beyond the effects of the volatile,
oil-price-driven energy sector to the mainland economy which
follows the business cycle like any other.  In the short term,
Norwegian monetary policy will take its cue from an assessment
of whether the economic outlook globally is improving.  Norges
Bank will look in particular to see if demand is rebounding in
the struggling euro zone. If it does, that would boost Norway’s
depressed exports and push an already low unemployment rate
still lower.  The inflationary impulse that would send to the
economy could get consumer price growth moving up closer to the
central bank’s 2.5% target from around 2%.  That could spur the
bank to shorten the time frame for future rate hikes.  The
Norwegian mainland economy