There are still no green Swedish government bonds, but green bonds have increased substantially in corporate bonds. 35 See ICMA (2018) for a description of the principles for green bonds. 15 [18]  on the Swedish and the global economy, we will cooperate with others on financial sector regulation and we will continue the work to review the assets we have on our balance sheet. I would particularly like to highlight the opportunities that central banks have to understand and analyse the role of financial markets in the transition to a more sustainable future. It is important that we do not make the same mistakes again as before the global financial crisis when many, but not all36, economists and central banks misjudged how quickly and powerfully a mispricing of risk in the US housing market would spread through the global financial system. We need to act now to reduce the risk of a mispricing of climate-related risk triggering a new economic crisis. The central bank world was perhaps a little slow off the mark, but now when the ball is rolling, things are moving forward rapidly. The rapid emergence of the NGFS is one reason for optimism; an increasing number of central banks are now taking the climate issue very seriously. I would like to finish by once again extending my thanks to you for organising this seminar.
The cost level in the Norwegian economy, compared with that of our trading partners, rose substantially with the beginning of the oil age. The level has fluctuated somewhat since then, without a clear tendency to become higher or lower, and has, over time, been adapted to a steady phasing-in of petroleum revenues into the mainland economy. When we reach a point in the future when the share of imports that can be financed by petroleum revenues declines, the relative cost level will have to be reduced. The real exchange rate may have to be brought back to around the level prevailing at the end of the 1960s, prior to Norway’s emergence as an oil nation. This depreciation can be achieved either by lower price and wage inflation in Norway than in other countries or by a nominal depreciation of the krone. The latter would be the least painful channel, and with a flexible exchange rate it is also the most likely. Final remarks To sum up, increased globalisation and the ensuing terms of trade improvements have exposed the Norwegian economy to a significant upward income shock. This has amplified the domestic upswing. So far, however, strong growth impulses have not led to major imbalances in the labour market or strong upward wage and price pressures. This may be seen as an indication that our fiscal and monetary policy guidelines have been quite successful so far in shielding the Norwegian economy from excessive fluctuations.