Professor believes Norges Bank is letting the krone almost go to waste – being called “shitcoin”

The krone has experienced a dramatic weakening in recent years, while Norges Bank has been passive, and this affects most Norwegians hard.

That’s what Espen Gaarder Haug writes in a comment in Finansavisen. He is professor of finance at the Norwegian Business School at NMBU.

According to Gaarder Haug, almost all imported goods are rising in price.

– And as almost everything we use is imported – such as electronics, white goods, cars, and even large parts of our food. The cost of foreign travel also increased significantly, due to the weak krone, he writes.

The professor points out that there is reason to wonder why Norges Bank is not taking measures to strengthen the krone. He refers to Norwegian legislation, where it is stated that the purpose of central banking operations is to maintain a stable monetary value, promote stability in the financial system and ensure an efficient and secure payment system.

– Letting the Norwegian krone almost go to waste is perhaps not quite the same as working for a stable monetary value? asks Gaarder Haug, and points out that the currency has weakened so dramatically that it has now become popular among many in the financial market to call the Norwegian krone a shitcoin.

He believes that the Oil Fund should buy some kroner and invest more in Norway.

– Had the politicians opened the way for the Oil Fund to invest even a very small percentage in Norwegian kroner, even just the signaling effect of this possibility would probably strengthen the krone considerably, writes Espen Gaarder Haug, and adds:

– For example, large infrastructure projects could be initiated such as fast trains between Bergen and Oslo and Trondheim and Oslo, as well as strengthening the defense and the health sector as well as research and education, and also investing in several Norwegian companies.