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How Expensive is Norway? New International Relative Price Measures

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  • Ms. Kornelia Krajnyak
  • Mr. Volodymyr Tulin

Abstract

In this paper, we derive two new measures of international relative prices for Norway. Developments in these new measures follow rather closely movements in the CPI-based real effective exchange rate through the 1990s, but diverge after 2000—suggesting that the costs of living in Norway relative to its trading partners have risen in the recent years more than the real effective exchange rate would indicate.

Suggested Citation

  • Ms. Kornelia Krajnyak & Mr. Volodymyr Tulin, 2010. "How Expensive is Norway? New International Relative Price Measures," IMF Working Papers 2010/133, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2010/133
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