Norway's Wealth Problem: How Do You QE Without Government Debt?
- Norges Bank may aim directly for krone if stimulus needed
- DNB says significant strengthening krone needed for QE
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Norway is just too rich for quantitative easing.
With an $850 billion wealth fund as a backstop, the nation has had a limited need to issue bonds, leaving the level of outstanding debt potentially too small for purchases. That means launching a QE program would probably be the last measure its central bank would turn to as it seeks to avoid a recession amid low oil prices.