So I had placed myself on the sideline, but I compensated by offering to chair a number of public commissions.” 26 Governor Knut Getz Wold wrote in 1972 that: “Norges Bank’s position today in relation to the government authorities is not, however, defined by a formal right to make decisions on specific issues, but by its role as advisor …”. He went on to say: “Norges Bank has limited direct power. This is as it should be. But it has, and should have, influence. If store is to be set by its word, it must keep abreast of developments at home and abroad. The Storting and the government have the final word. Having said that, Norges Bank will loyally and actively follow up their decisions.” 27 In 1973, the efforts to develop an economy under strong centralised coordination and control culminated in a proposal to establish an incomes policy council with regulation of wages. 28 The proposal was logical. It was the last wall in the structure erected after the war. Coordination and regulation were important key words.
37 The Act was drafted in the light of Norges Bank’s role in the postwar government administration. Therefore, the new Executive Board, which replaced the board of directors under the 1892 Act, is now appointed by the Council of State. 35  Elster, Jon (1979): Ulysses and the Sirens. Studies in Rationality and Irrationality, University Press, Cambridge. 36  Stanley Fischer introduced the difference between goal and instrument independence. See Fischer (1995): “Modern approaches to central banking”, NBER Working Paper No. 5064. 37  The Norges Bank Act is discussed in Helge Syrstad (2003):” Sentralbankens uavhengighet” [Central bank independence], Fagbokforlaget. 10  BIS Review 154/2010  Under the Act, Norges Bank is an executive and advisory body for monetary, credit and foreign exchange policy and shall monitor developments in the money, credit and foreign exchange markets. The Act makes no reference to the objective of monetary policy. On the contrary, its formulations are completely open-ended. 38 The Bank shall conduct its operations in accordance with the economic policy guidelines drawn up by the government authorities. How this was to be interpreted was the subject of controversy in the first years. Today, in the light of both the text of the Act and of the preparatory works, the implications of this may also be unclear. This provision has not gained any further practical significance. Today, Norges Bank no longer looks for guidelines in public documents.