The Economics Of Norway

September 13, 2013 in Daily Bulletin

Norway takes the money it earns from its oil exports and invests it into a sovereign fund. Matthew Price looked at the problem of having too much money:

  • $1 billion a week is put into the fund as a result of profits and taxes from the oil and gas industry.
  • This money can’t just be given to consumers or pumped into the economy since that would drive inflation.
  • The oil fund owns around 1% of the world’s shares – and 2% of Europe’s publicly traded companies.
  • It considers the social impact of the companies that it invests in…and this may have driven some companies to end child labour.

Read more about the fund, the plans to break it up into smaller pieces, and why it is proud of its investments in Facebook over here.

Source: BBC