In a period of increased cross-border labour flows, substantial technological advances, changes in competitive conditions and new trading patterns, we may, with our very open economy, have to accept a somewhat greater variation in inflation and deviations from the target, as we have witnessed over the past two to three years. Even though economic growth has been strong over the past 15 years, economic cycles have varied. A clear upturn in the years from 1993 to 1998 was followed by a period of more moderate growth and  3  Interview in Adresseavisen, 27 December 1980. 4  Based on an analysis conducted by Norges Bank of price indices for more than 130 different groups of goods and services for the period 1980-2005. 5  Alan Greenspan: Testimony before the Committee on Banking, Finance and Urban Affairs, U.S. Senate, July 13, 1988. BIS Review 10/2006  3  a mild downturn in 2002 and into 2003. Since summer 2003, the Norwegian economy has again experienced a marked upturn. Wage developments reflect and influence business cycles. Strong employment growth in the 1990s resulted in a rise in labour costs, which in turn had a dampening impact on growth. Moderate wage growth in recent years is being accompanied by a strong cyclical upturn. The Norwegian economy has continued to exhibit high growth this year. Low interest rates, higher petroleum investment and strong global growth have been the most important driving forces.
Price stability is essential for sustained economic prosperity, and we are strongly committed to using our tools as needed to achieve our price stability and maximum employment goals. 1 International Monetary Fund, Database of Fiscal Policy Responses to COVID-19,  October 2021. 2 Olivier Armantier, Fatima Boumahdi, Leo Goldman, Gizem Koar, Jessica Lu, Giorgio  Topa, and Wilbert van der Klaauw, "Have Consumers' Long-Run Inflation Expectations Become Un-Anchored?," Federal Reserve Bank of New York Liberty Street Economics, September 24, 2021; Olivier Armantier, Leo Goldman, Gizem Koar, Giorgio Topa, Wilbert van der Klaauw, and John C. Williams, "What Are Consumers' Inflation Expectations Telling Us Today?," Federal Reserve Bank of New York Liberty Street Economics, February 14, 2022. 3 Olivier Armantier, Leo Goldman, Gizem Koar, Giorgio Topa, Wilbert van der Klaauw,  and John C. Williams, "What Are Consumers' Inflation Expectations Telling Us Today?," Federal Reserve Bank of New York Liberty Street Economics, February 14, 2022. 4 Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC  Statement, March 16, 2022. 5 Board of Governors of the Federal Reserve System, Summary of Economic  Projections, March 16, 2022. 4/5  BIS - Central bankers' speeches  6 Board of Governors of the Federal Reserve System, Principles for Reducing the Size  of the Federal Reserve's Balance Sheet, January 26, 2022. 5/5  BIS - Central bankers' speeches