10  This monetary policy regime has performed well through several rounds of shocks to the Norwegian economy. Both during the financial crisis in 2008 and after the oil price fall in 2014, monetary policy was able to respond quickly. Moreover, the krone exchange rate has functioned as an important shock absorber. When Norway’s terms of trade weakened owing to the oil price fall, a weaker krone helped to support business sector competitiveness. Chart 9 Historically low policy rate Percent 12  12  10  10  8  8  6  6  4  4  2  2  0  0  1991  1996  2001  2006  2011  2016  NORGES BANK ECONOMIC PERSPECTIVES 18 FEBRUARY 2021  2021  Source: Norges Bank  With a policy rate of 1.5 percent, monetary policy could again make a contribution when Norway and much of the global economy locked down nearly a year ago. In the space of a short time, the policy rate was lowered to zero (Chart 9). The policy rate cuts had a broad impact and freed up funds for indebted businesses and households. As containment measures are scaled back, continued low interest rates will underpin consumption and investment, paving the way for a resumption of business activity. The room for manoeuvre in monetary policy is nearly exhausted. We do not envisage making further policy rate cuts from today’s level.
In order to deal with this problem, it is important that the new exchanges establish clear rules regarding participation and price quotation as soon as possible in the process of starting their operations. Finally, I would like to say a few words about electronic money. E-money is still very much in its infancy but has the potential to develop. In the euro area, various e-money schemes exist. Although the volume of e-money in circulation currently remains very low in the euro area, the number of devices already in circulation suggests that usage could expand rapidly ("Issues arising from the emergence of electronic money", November 2000 edition of the Monthly Bulletin of the ECB, p.49-60.) In this context, it was important that the regulatory framework was clearly set up at an early stage so as to reduce uncertainty. In my view, this will encourage innovation. I am glad to say that the framework adopted in the European Union has the advantage of ensuring a high measure of security for customers, in particular through providing protection against counterfeiting and money laundering. For monetary policy, there are three main issues arising from the emergence of electronic money. First, it is important that electronic money does not jeopardise the unit of account function of money. In other words, electronic euros stored on a payment card must have the same value irrespective of when and by whom the card was issued. This important principle has been safeguarded in European legislation through the imposition of a redeemability requirement for e-money.