• Documentation of NEMO - Norges Bank’s Core Model for Monetary Policy Analysis and Forecasting 

      Gerdrup, Karsten R.; Kravik, Erling Motzfeldt; Paulsen, Kenneth Sæterhagen; Robstad, Ørjan (Staff Memo;8/2017, Working paper, 2017)
      This paper explains the basic mechanisms of Norges Bank’s core model for monetary policy analysis and forecasting (NEMO). NEMO has recently been extended with an oil sector to incorporate important channels of shocks to ...
    • Handling structural break points in NEMO 

      Kravik, Erling Motzfeldt; Paulsen, Kenneth Sæterhagen (Staff Memo;2/2020, Working paper, 2020)
      This paper documents a new feature in Norges Bank’s policy model NEMO, namely the ability to handle structural break points, i.e. shifts in one or more parameter values at a specific point in time. This property is introduced ...
    • Leaning against persistent financial cycles with occasional crises 

      Kockerols, Thore; Kravik, Erling Motzfeldt; Mimir, Yasin (Working Paper;11/2021, Working paper, 2021)
      Should central banks use leaning against the wind (LAW)-type monetary or macroprudential policy to address risks to financial stability? We first assess LAW as a one-off (nonsystematic) policy using an estimated large-scale ...
    • Navigating with NEMO 

      Kravik, Erling Motzfeldt; Mimir, Yasin (Staff Memo;5/2019, Working paper, 2019)
      This paper describes NEMO, the main dynamic stochastic general equilibrium model used at Norges Bank for monetary policy analysis and forecasting. NEMO has been used to identify the sources of business cycle fluctuations ...
    • Norway’s road to inflation targeting : Overcoming the fear of floating – counterfactual analyses of four episodes 

      Eitrheim, Øyvind; Qvigstad, Jan Fredrik; Kravik, Erling Motzfeldt; Mimir, Yasin (Occasional Papers;56/2020, Book, 2020)
      Norway suffered from a deep recession with a systemic banking crisis in the early 1990s. The prevailing fixed exchange rate system at that time had procyclical properties. The fall of the Berlin Wall in 1989, the German ...