What is the role of large playersʺ like hedge funds and other highly leveraged institutions in speculative attacks? In recent theoretical work, large players may induce an attack by an early move, providing information to smaller agents. In contrast, many observers argue that large players are...

We evaluate the policy of flexible inflation targeting implemented by the Norges Bank since March 2001. We discuss the reasons why the real interest rates are significantly higher in Norway than in the rest of Europe. Finally we propose some institutional changes that can improve the policy...

Loans to non-financial enterprises are the main source of banks' losses. Analyses of banks' losses on corporate loans are therefore important in the assessment of financial stability. This paper presents Norges Bank's framework for estimating losses on corporate loans built up from microdata for...