sg cme 08. 06.. 2004 the following chart shows a similar estimation using the quarterly figures that i just showed you. norges bank output gap for mainland norway, based on annual figures and quarterly figures annual figures quarterly figures - 1 - 1 - 2 - 2 - 3 - 3 - 4 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 - 4 sg cme 08. 06.. 2004 source : norges bank we must not and cannot fine - tune economic developments. we must therefore exercise caution in our use of short - term statistics and quarterly figures. changes in these figures may represent more noise than news. the challenge facing us is to identify the contours of cyclical developments. see inflation report 1 / 2003 for further discussion on the method of calculation. allow me to conclude. today ’ s monetary policy is based on the experience gained by norway and other countries, over the past 30 years in particular, and on the results of extensive macroeconomic research. important lessons are : – inflation is a monetary phenomenon. a country with a national currency can choose the level of its own inflation. inflation in a country is not something that drifts in with the wind from abroad. – if monetary policy is to function effectively, an institutional framework is required to reinforce confidence that overriding weight is assigned to long - term objectives. the institutional framework and guidelines for monetary policy in norway reflect developments in other countries. this is of particular importance for a small country because of the considerable influence international operators have on developments in our country. rules can anchor expectations, but they must be credible and robust to disturbances to international and domestic economic developments. inflation targeting is in practice a flexible rule that can stabilise expectations and at the same time provide room for adapting to the abrupt shifts our economy is exposed to. thank you for your attention.

the fxcs in early october. as was the case with the first phase, there will be three opportunities for market participants to provide feedback on the material. we will endeavour to make clear how the feedback provided has been addressed. the intent is for the full code to be published in may 2017. i will now talk about a couple of the areas that are addressed in the first phase of the code, which is already in the public domain. in the first phase, topics were covered that the market was looking for guidance on sooner rather than later and that were potentially having an adverse effect on market functioning. one example of this is around information sharing, where many market participants have highlighted that they are unsure what information can be conveyed to counterparties and other market participants. while it is clear ( or at least should be ) that disclosing the details of a client ’ s order book to a counterparty is not acceptable, market participants have noted that there is much less clarity around what level of aggregation, say, is necessary in order to convey market colour appropriately. as a result, it appears some market participants are being very conservative in sharing information, which can have implications for the effective functioning of the market. this is notwithstanding the guidance provided in this area in the global preamble put out by the global foreign exchange committees, in march 2015. 4 the global code takes the material in the global preamble and fleshes it out a bit more, including with some examples of what is, and isn ’ t appropriate communication, and why. there will be more examples provided in the second phase of the code. similarly, there have been diverse opinions around what is appropriate behaviour in terms of order handling. while there have been some very public instances of inappropriate behaviour around order handling which have come to light in recent years, in other areas, the market is seeking greater guidance as to what principles should be followed, including the different standards that may apply depending on whether an intermediary is functioning as principal or agent. 5 http : / / www. bis. org / about / factmktc / fxwg. htm. http : / / www. rba. gov. au / afxc / about - us / pdf / global - preamble. pdf. i am not using these terms in the legal sense that is sometimes the case in particular jurisdictions, but rather in terms of common market parlance. bis central bankers ’ speeches this is one area that was not adequately