. norwegian government authorities receive substantial revenues from the extraction of oil in the north sea. norway is the world ’ s second largest exporter of oil, and the budget surplus is currently approximately 11 % of gdp. oil revenues increase consumption possibilities. however, it is a challenge to manage these resources in a way that increases welfare for both current and future generations. a rapid expansion of the sheltered sector based on uncertain and perhaps temporary increases in petroleum revenues may lead to the situation called dutch disease. to manage its resources, norway has created the government petroleum fund, which receives revenues from the petroleum sector, transfers the amount necessary to produce a balanced government budget and invests the surplus abroad. as long as the increase in petroleum income is kept outside the domestic economy, there will be less need for structural change and thus less need for exchange rates to change. a one dollar increase in the oil price gives an increase in gdp of almost 1 % and most of it arrives as increased budget revenues. with large and varying budget revenues, the basis for determining central government expenditure and taxes from one year to the next may easily be impaired. if budget expenditure is allowed to fluctuate in step with oil prices, the result may be abrupt shifts and instability in the norwegian economy. changes in oil prices may then quickly influence wage and price expectations, the exchange rate and long - term rates. in that case it will be very demanding to achieve nominal stability. short - term interest rates would have to be changed frequently and sharply and would generally reflect a high risk premium for the norwegian krone. it is therefore important that the annual budgets are anchored in a long - term strategy that takes into account that oil revenues may fluctuate from one year to the next. in addition, it is advantageous if fiscal policy can be used to counter fluctuations in demand and production. final words by hosting this workshop, we hope to take part in an exchange of new knowledge about the conduct of monetary policy. we hope that the workshop will be a fruitful experience for both researchers and monetary policymakers.

jorgovanka tabakovic : taking knowledge to a higher level in serbia speech by dr jorgovanka tabakovic, governor of the national bank of serbia, on the occasion of signing of the memorandum of cooperation between the national bank of serbia and the faculty of economics in belgrade, belgrade, 27 january 2016. * * * dear colleagues, esteemed mr. boricic, esteemed members of the press, allow me at the beginning to answer four simple questions. why is this memorandum signed today by mr. boricic, as the dean of the faculty of economics, and myself, as the governor? because, by definition, it is the top manager's task to be in command of the future, finance and human resources. this is and has been the responsibility of the head of an institution. why are we signing this memorandum today, three and a half years into my term in office? because all informal channels, personalities, letters of reference have so far turned out to be an insufficient guarantee that we would get the best people. yes, some came and have stayed, but there are also many who came and left. many of those for whom the nbs was just a stepping stone, a training ground, and, in the worst - case scenario for this country, a reference for a future elsewhere, outside serbia. after signing this memorandum, we will have a chance to select “ the best of the best ” and ensure they stay with the national bank of serbia. how did the memorandum come about? it was at the initiative of the young people from the faculty of economics who are here with us today. they knocked on our doors introducing themselves as the team for serbia. the team. and for me, this was the key word. because, the solution lies not in genius individuals, but in the genius of a team of individuals. a team with a leader – yes, a team at the top – no, and this is why we are here today and why we are signing this memorandum. this meeting is motivated by the basic needs of men : to learn, to progress and to create. and why do we need each other – the faculty of economics in belgrade and the national bank of serbia? because there is no alternative to knowledge. and because in order to add value and improve by practice, you must have something of value to start with. during summer practice in the nbs, students are given a chance to improve on the qualities they already demonstrated during