as we now move on to further enhance the macroprudential policy strategy, regulatory data and instruments for addressing risks in non - bank financial sectors. i should mention that other work related to non - bank financial institutions has also been conducted, where the recently published annual esrb shadow banking monitor will hopefully provide important insights. the monitor provides an overview of developments in the shadow banking sector, with focus on assessing potential risks to financial stability. it is intended to foster progress of the debate on related issues and hence targets a broad readership. the overall mission is to eliminate potential blind spots on the macroprudential map and to connect all the dots. to achieve that, we need both an analytical framework underpinned by sufficiently high quality data, and a policy framework which enables us to target risks in different parts of the financial system in a consistent manner. the resilience of a specific part of the financial system needs to be linked to its potential impact in terms of the systemic risk it could generate for the financial system as a whole. we may also need to develop a wider financial stability toolkit. this would, for instance, include | 6 top - down stress tests for asset managers and central counterparties, and recovery and resolution frameworks for the insurance sector and central counterparties. the esrb is very well placed to play one of the leading roles here, due to its mandate, the broad expertise of its membership and its inclusive working methods with a wide range of the relevant stakeholders interacting. the long and winding road from global to national regulation i have been speaking about crr / crd on and off here for the past few minutes, but let me just elaborate a little bit more from another angle. the crr / crd started out after a global framework had been agreed in basel, and this eu level framework was in turn implemented at national level in the member states. in my day - to - day work i deal with financial stability issues on different levels if one will ; as chair of the basel committee for banking supervision the scope is global, while as governor of the swedish central bank i have a national perspective on financial stability although, admittedly, the international agenda and developments play a key role there, too. being chair of the advisory technical committee of the esrb and a member of its decision making body, the general board, of course provides an eu - level perspective on macroprudential policy and systemic risk. these levels or perspectives are in my view becoming increasingly inter

øystein olsen : navigating normalisation speech by mr øystein olsen, governor of norges bank ( central bank of norway ), at the bank of thailand – omfif high - level seminar, bangkok, 9 october 2018. * * * first, let me thank you for the opportunity to speak to you today. i am very happy to visit the bank of thailand and to participate on this panel. the financial crisis demanded powerful economic policy measures. monetary policy had to take on substantial responsibility, in norway as in many other countries. as we are hopefully heading for more normal times, it is important to evaluate our policy framework. our experience is that a flexible inflation targeting regime has helped dampen the impact on the real economy. in recent years, output and employment volatility has been relatively limited despite large shocks to the norwegian economy. the exchange rate has played an important role as a shock absorber, especially during the financial crisis and in periods when oil prices have fallen. at the same time, the interest rate level abroad places limitations on the room for manoeuvre in monetary policy in a small open economy like norway. our economy and economic policy before i elaborate on this, i would like to give you some background on my country. norway is a small country with a little more than five million inhabitants. the economy is open ; total imports and exports make up about 2 / 3 of gdp. the public sector benefits from the government ’ s large revenues from petroleum extraction, and although the direct employment effect is small, the impact on the overall economy is significant. these specific features of the norwegian economy are important concerns behind the framework for economic policy. fiscal policy is governed by a fiscal rule, designed to insulate public finances from oil price volatility. the government ’ s large petroleum revenues are channelled into the government pension fund global and the fund ’ s capital is invested abroad. the fiscal rule specifies that only the expected real return of the fund, on average over the cycle, is to be spent over public budgets every year. with this set - up, the fund also provides leeway for discretionary fiscal expansion when needed and enables future generations to benefit from norway ’ s petroleum revenues. monetary policy has targeted low and stable inflation since 2001. after an adjustment earlier this year, the operational target of monetary policy is now annual consumer price inflation of close to 2 percent over time. inflation targeting shall be forward - looking and flexible so that it can contribute to high