Admati, A and Pfeiderer, P (2010), “Increased-Liability Equity: A Proposal to Improve Capital Regulation of Large Financial Institutions”, Graduate School of Business, Stanford University. Alessandri, P and Haldane, A G (2009), “Banking on the State”, Bank of England, available at http://www.bankofengland.co.uk/publications/speeches/2009/speech409.pdf Anglo-Continental Guano Works v Bell (Surveyor of Taxes) (1894) 3 TC 239. Aspen Institute (2009), “Overcoming Short-termism: A Call for a More Responsible Approach to Investment and Business Management”, The Aspen Institute Business and Society Program, September 9. Bagehot, W (1873), “Lombard Street: A Description of the Money Market”, History of Economic Thought Books, McMaster University Archive for the History of Economic Thought. Bankers’ Magazine (1951–68). Basel Committee on Banking Supervision (2010a), “An assessment of the long-term economic impact of stronger capital and liquidity requirements”, Bank for International Settlements. Basel Committee on Banking Supervision (2010b), “Principles for enhancing corporate governance”, Bank for International Settlements. Bliss, R R and Flannery, M J (2002), “Market discipline in the governance of US bank holding companies: monitoring vs. influencing”, European Finance Review, Vol.6, pages 361–395. Calomiris, C W (2011), “Incentive-Robust Financial Reform”, The Cato Journal, Vol. 31 No. 3 (Fall 2011), pages 561–589. Calomiris, C W and Gorton, G (1991), “The Origins of Banking Panics: Models, Facts, and Bank Regulation”, in “Financial Markets and Financial Crises”, NBER, pages 109–174. Calomiris, C W and Herring, R (2011), “Why and How To Design an Effective Contingent Capital Requirement”, Columbia Business School Working Paper, February.

A specific target for monetary policy was thus a necessary supplement to the fiscal rule to ensure reasonable macroeconomic stability. The operational target states that monetary policy in Norway is oriented towards low and stable inflation, with annual consumer price inflation of approximately 2.5 per cent over time. In its conduct of monetary policy, Norges Bank operates a flexible inflation targeting regime, so that weight is given to both variability in inflation and variability in output and employment. 2  BIS Review 106/2006  Current economic situation Since the summer of 2003, there has been a clear upturn in the Norwegian economy. Low domestic interest rates, increased petroleum investment, favourable prices in important export markets, and a strong upturn in the world economy have contributed to solid growth in the Norwegian economy. So far in the upturn, the mainland economy has grown by an average of close to 4 per cent annually. Current information on economic developments indicates that the upswing is continuing. Corporate sector profitability is good. There is strong growth in employment, unemployment has fallen markedly, and household demand continues to rise. Unemployment is now at a historically low level. Seasonally adjusted, registered unemployment stood at 2.3 per cent of the labour force in October. Nevertheless, wage moderation has generally prevailed so far. The opportunities provided by an international labour market may have prompted participants in local and centralised wage negotiations to place greater emphasis on the considerably higher wage level in Norway relative to our trading partners, and potential job vulnerability.