It appears to me a particular strength of our country and an important part of the Swiss recipe for success that we are able to review new developments impartially and prudently, adapt them to our own situation if we consider them good, and link them organically to tested and tried systems wherever possible. 8  BIS central bankers’ speeches
The choice of a two-year horizon is thus based on striking a balance between variability in inflation and variability in output and employment, and a perception of how interest rates influence these variables. If extraordinary conditions prompt Norges Bank to apply a different time horizon than two years, the Bank will provide an assessment of this. The same applies if special emphasis is placed on developments in financial markets. External cyclical developments and events have had considerable implications for developments in the Norwegian economy. The international upturn came to a halt in 2000. The bubbles in equity markets burst. Many years of high investment had led to excess capacity in some industries, and unemployment increased. The terrorist attacks on 11 September 2001 put a new damper on economic activity. From summer 2002 to spring 2003, a highly unusual accumulation of negative events in the global community - accounting scandals, fear of terror, war and disease - put a brake on growth. US policy rates, which were sharply reduced at the beginning of the downturn, have subsequently been reduced further. Interest rates have also remained low in the euro area. In recent weeks, shortand long-term rates have moved up somewhat. This primarily reflects increased confidence that the recovery in the US will be sustained since the situation in the labour market appears to have improved. Both short and long rates, however, are still at historically very low levels among several of our trading partners.