same time reiterate that some risk is worth undertaking. broad support for important principles in the management of the gpfg is a strength that will stand the fund in good stead the next time turbulence erupts in financial markets. 1 dimson e., p. marsh and m. staunton ( 2018 ) credit suisse global investment returns yearbook 2018 / e. dimson e., p. marsh and m. staunton ( 2002 ) triumph of the optimists : 101 years of global investment returns, princeton university press. 2 dimson e., p. marsh and m. staunton “ long - term asset returns ” in financial market history, edited by d. chambers and e. dimson. 3 the figures are annual figures and the percentage falls are therefore smaller than for measurements from the peak to the trough on a monthly basis. 4 the government petroleum fund, annual report 2002. norges bank. 5 see discussion note 1 / 2017, international diversification for long - term investors, nbim 6 dimson e., p. marsh and m. staunton : credit suisse global investment returns yearbook 2018. dimson e., p. marsh and m. staunton. triumph of the optimists : 101 years of global investment returns, princeton university press, 2002. 7 ibid. 8 estimated market value in the fund ’ s benchmark index if the companies had not been excluded. 6 / 6 bis central bankers'speeches

jarle bergo : monetary policy and cyclical developments speech by mr jarle bergo, deputy governor of norges bank ( central bank of norway ), at sparebanken sogn og fjordane, førde, 18 october 2004. the text below may differ slightly from the actual presentation. the address is based on the assessments presented at norges bank ’ s press conference following the executive board ’ s monetary policy meeting on 22 september, inflation report 2 / 04 and on previous speeches. the references and the charts in pdf - format can also be found on the website of the norges bank. * * * price stability, in the sense of low and stable inflation, is the objective of monetary policy in a number of countries. historical experience from norway and other countries has shown that high inflation has resulted in unstable output and employment. in addition, a fall in the price level will often accompany a period of decline. the first inflation target was introduced in new zealand in 1990. canada followed in 1991, the uk in 1992, and sweden and australia in 1993. in norway, the government issued a regulation introducing an inflation target in 2001. monetary policy in euro area countries and switzerland is also aimed at price stability, even though this is not referred to as inflation targeting in these countries. inflation targeting has proved to be particularly appropriate in very open small and medium - sized economies. commodity exports play a particularly important role in several of the countries that were the first to introduce inflation targeting. current inflation is low, but our recent history shows that without a nominal anchor inflation was high and variable and that we did not achieve higher growth in exchange for inflation. an economic policy that fuels inflation does not generate higher economic growth. on the contrary, it paves the way for subsequent recession and unemployment. high and variable inflation usually accompanies instability in output and employment. but inflation should not be too low over time either. this is partly because the structure of the economy evolves over time. demand for labour with different qualifications changes. restructuring requires changes in real wages and relative wages. nominal wages do not readily fall. with some measure of inflation, real wages and relative wages can be changed without reducing nominal wages. some degree of inflation oils the economic machinery. in periods, it will be appropriate to stimulate the economy with low, or even negative, real interest rates. if inflation becomes entrenched at a very low level, the interest rate will be less effective as an instrument because it cannot be set