Percent of global GDP. 1975 – 2017 70 60  70  Trade in goods Trade in services  60  50  50  40  40  30  30  20  20  10  10  0 1975  0 1980  1985  1990  1995  2000  2005  2010  2015  1) Trade is defined as the sum of exports and imports of goods and services. Source: World Bank  A more closely interwoven world economy has facilitated specialisation, innovation and better use of local comparative advantages. The room for exchanging ideas and knowledge has expanded. Increased competition and innovation have gone hand in hand. Efficient global trade is particularly advantageous for small open economies, like Norway. Norway has benefitted greatly from the opportunities afforded by trade with other countries. 3  It is almost impossible to imagine today’s welfare level without the specialisation brought about thanks to a world of open borders. Norway exports a limited range of goods and services to the world market (Chart 2). This allows Norway to finance imports of numerous finished goods, which are cheaper than if we had manufactured them at home. Labour is thereby freed up for use in education, health and other services. NORGES BANK ECONOMIC PERSPECTIVES 14 FEBRUARY 2019  Chart 2 Exchange of goods gives Norway opportunities. Trade in goods. In billions of NOK.
Trends that now appear to be leading us in the wrong direction can change course. NORGES BANK ECONOMIC PERSPECTIVES 14 FEBRUARY 2019  My successor announced that the next generation of central bank digital currency would be managed by artificial intelligence. That is not likely to happen. The responsibility for the monetary system cannot be relegated to models and algorithms. The choices we make as a central bank must be based on thorough analyses, discussions and human judgement. Come what may. 16