Suchergebnisse

Hedging against future price movements can be important both for those producing goods and for those buying them. Commodity derivatives may be employed as a hedge against price risk, and this is one of the reasons behind several initiatives to establish fish derivatives markets in Norway. This article discusses the general terms for establishing commodity derivatives markets. There is seldom more than one derivatives market for a commodity. The success of a Norwegian fish derivatives market will depend on global competition between such marketplaces, and this competition will determine whether and what type of initiative that will succeed. Norwegian (and European) legislation for commodity derivatives appears to be adequate. The markets are well organised and Norwegian legislation ensures that transactions involving standardised products are settled in a clearing house and that netting rules apply. This contributes to ensuring financial security in the commodity derivatives markets. The market positions held by financial institutions are otherwise too small to threaten general financial stability.

This article discusses the ways in which efficient securities markets benefit society, how Norwegian securities market legislation is being modernised to be in line with European standards, and in addition issues related to changes in Norwegian securities market infrastructure. In the first section the social usefulness of securities markets is explained. The most important aspect of this is that smoothly functioning securities markets, together with a well developed financial sector, promote growth throughout the economy. Through the direct transmission of funding from investor to projects, securities markets also contribute to financial stability. The second section deals with amendments to Norwegian securities markets legislation that are under way. Special attention is paid to the European Economic Area and its implications, including the requisite transposition of EU legislation into Norwegian law. The third section discusses the specific tasks performed by the stock exchange and comments on whether the infrastructure organisations of securities markets need to be domestic in order to reap the social benefits of securities markets.

A reform of the fairly generous Norwegian public pension system was agreed upon by a broadly based coalition in the Norwegian Parliament in May 2005. The reform promises to reduce future costs and to improve labour incentives to work. The publicly provided pensions in Norway are of a PAYGO nature, with an exception for the supplementary pensions of the employees of the municipal sector. Norway is in an enviable economic situation. Even before the oil incomes started to accrue the financial position of the Norwegian public sector was good. Presently the oil-wealth is being converted to financial wealth on the public hands at a high pace. Current projections are that the fund accumulated from petroleum revenues shall exceed one year's gross domestic product in 2007. As en element of the pension reform this fund has been renamed to "The Government Pension Fund – Global". There also exists a "Government Pension Fund – Norway". These two funds are government property, and they have no specific task or obligation in providing the pensions. This paper outlines the main elements of the pension system in Norway and the reform, and illustrates a possible route for further reform. The extraordinary fiscal position of Norway can be used to create the initial fund in a (at least partially) funded pension system. Such a reform will reduce tax wedges and increase economic efficiency. Some implications for the Norwegian capital market and government budget are discussed.

A reform of the fairly generous Norwegian public pension system was agreed upon by a broadly based coalition in the Norwegian Parliament in May 2005. The reform promises to reduce future costs and to improve labour incentives to work. The publicly provided pensions in Norway are of a PAYGO nature, with an exception for the supplementary pensions of the employees of the municipal sector. Norway is in an enviable economic situation. Even before the oil incomes started to accrue the financial position of the Norwegian public sector was good. Presently the oil-wealth is being converted to financial wealth on the public hands at a high pace. Current projections are that the fund accumulated from petroleum revenues shall exceed one year's gross domestic product in 2007. As en element of the pension reform this fund has been renamed to "The Government Pension Fund - Global". There also exists a "Government Pension Fund - Norway". These two funds are government property, and they have no specific task or obligation in providing the pensions. This paper outlines the main elements of the pension system in Norway and the reform, and illustrates a possible route for further reform. The extraordinary fiscal position of Norway can be used to create the initial fund in a (at least partially) funded pension system. Such a reform will reduce tax wedges and increase economic efficiency. Some implications for the Norwegian capital market and government budget are discussed.