the fund contribute to both curbing the appreciation of the krone and maintaining its stability. at the end of 2005, the market value of the pension fund ’ s portfolio was roughly 73 per cent of gdp. as shown in the chart, the value of the fund is rising rapidly and may continue to do so in the years ahead. the fund is now approaching the nominal value of one year ’ s gdp and may reach two in the course of the next decade. on the other hand, norway, like many other countries, is facing substantial fiscal challenges. financing the large pension payments that will have to be disbursed in the coming years will be very demanding. final remarks to sum up, norway has a market economy and a large government sector. the way in which economic policy is oriented today reflects the knowledge gained and the lessons learned. we know from experience that fiscal policy alone cannot ensure a high level of employment. the structure of the labour market and wage formation are probably of greater importance. the direct regulation of credit, interest rates and capital movements collapsed and was phased out in the 1980s. price regulation no longer plays a role as a macroeconomic instrument. the scope of business policy has become more general. the most important contribution monetary policy can make to sound economic developments in the long term is low and stable inflation. low and stable inflation has contributed to solid growth in the global economy in recent years. thank you for your attention.

rather than from the non - standard measures implemented in particular by central banks. the world ’ s leading economies have recently been called upon to cooperate in, or even coordinate, the design and implementation of their exit strategies. in particular, at the recent g20 meetings in st. andrews, the imf defined seven principles for the exit strategy, the last one being about international policy spillovers and cross - border collaboration. it reads as follows : “ making exit policies credible and consistent, together with communication and consideration of spillovers, will improve outcomes for all countries. coordination does not necessarily imply synchronization, but lack of policy coordination could create adverse spillovers. ” and moreover : “ spillovers from differences in monetary policy conditions could pose significant challenges. interest rate differentials are already generating capital flows into economies with higher see, for instance, jean - claude trichet, “ the ecb ’ s exit strategy ”, frankfurt, 4 september 2009 ; jose manuel gonzalez - paramo, “ non - standard monetary policy : five questions about the exit ”, london, 6 november 2009 ; jurgen stark, “ monetary policy before, during and after the crisis ”, tubingen, 9 november 2009. “ an ocean apart? comparing transatlantic responses to the financial crisis ”, rome, banca d ’ italia, 10 - 11 september 2009. yields. such inflows complicate monetary policy management, requiring difficult choices for authorities ”. indeed, not all countries are at the same stage of the cycle – some are already well on the way to recovery, while others are at a very early stage, experiencing more fragile growth. let me consider, for simplicity ’ s sake, three main areas or countries : emerging asia, latin america and the us respectively. you could include other countries and regions, such as the euro area, for instance, but it would only complicate matters and not add much to the analysis. in respect of returning to economic growth, emerging asia and latin america seem to be ahead of the us, whose growth is still fragile. so, logic would suggest that emerging asia exits first from the extraordinary post - crisis measures, then latin america and finally the us. this “ optimal ” sequence would mean that emerging asia tightens its policies as the economy gets back on track, thus avoiding domestic overheating and financial instability. the exit would be accompanied by an appreciation of asian currencies, and that in turn would favour a rebalancing of growth towards domestic demand