Jon Nicolaisen, the director of monetary policy at the Norges Bank, on Monday discussed how to set robust monetary policy during turbulent periods in the economy.

At the 2011 Foreign Exchange Seminar of the Association of Norwegian Economists, Nicolaisen outlined four important criteria to consider when setting an appropriate interest rate path.

Nicolaisen said interest rate should be set with a view to stabilising inflation at a target within a reasonable period of time or to bring it back to