limited. in the aftermath of the terrorist attack on 11 september last year, the aviation and travel industries reported job cuts. cutbacks have also been announced in the process industry. the guidelines for fiscal policy will stimulate activity because petroleum revenues will now be phased into the economy. according to the government ’ s estimate, the guidelines imply an average increase in the use of petroleum revenues in the central government budget of about 0. 4 per cent of mainland gdp each year from 2002 to 2010. the government budget that was approved for 2002 implies that the use of petroleum revenues will increase by 0. 6 per cent of mainland gdp from 2001 to 2002. the guidelines for fiscal policy imply a substantial stimulus each year. the expansionary impetus varies considerably, and is greatest in the first few years. however, an unpredictable and more expansionary fiscal policy than that implied by the guidelines would have resulted in greater uncertainty. the guidelines provide a stable framework that contributes to reducing some of the uncertainty. over time, the size of the internationally exposed sector will be affected by the portion of petroleum revenues that is absorbed by the norwegian economy but will be unaffected by monetary policy. any appreciation of the krone may, nevertheless, affect the speed at which changes occur in the business sector. to maintain a balance in the norwegian economy, the phasing in of petroleum revenues must be countered by a monetary policy stance that is tighter than it would otherwise have been. this may be accomplished through a higher interest rate, an appreciation of the krone, or both. on balance, we expect moderate growth in the mainland economy in the next two years. the projections for gdp growth that were presented in the october 2001 inflation report were approximately on a par with the growth potential of the economy. household consumption and public spending are the main forces underpinning growth. fixed investment and exports are restraining growth. brisk growth in consumption is resulting in high demand for labour in public and private services. low international growth and lower petroleum investment are curbing employment growth. a tight labour market is generating continued high growth in labour costs. an expansionary fiscal policy, growth in private consumption and a continued high rise in labour costs contribute to a high rise in prices for domestically produced goods and services. at the same time, we expect a temporary decline in prices for imported consumer goods. this reflects lower international commodity and producer prices, a slower increase in global consumer prices and a stronger krone exchange rate. as these effects wane, and if global economic growth picks up in

actions taken in one country in response to a crisis can have effects on banks in other countries that do not choose to introduce the same resolution actions. for instance, issuance of government guarantees in one country can weaken banks in neighboring countries without such guarantees ( since government guarantees provide an incentive to move deposits to banks in these countries ). this shows the importance of international coordination also when it comes to crisis resolution. thank you for your attention.