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UsrHpns4rctct t1_izniiv8 wrote

Reply to comment by philassopher-guy in [OC] Inflation heatmap for 44 European, other DM and EM countries by adebar

I can only speculate, but I sure helps Norway that they at the moment is one of the greatest profiteers of the Russian invasion war into Ukraine. They are taking over a lot of the oil and gas sales that previously came from Russia. They are also exporting a lot of electricity to continental Europe (and UK?).

This is not directly the answer

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King_in-the_North t1_iznqde2 wrote

I’m sorry but you clearly don’t understand what causes inflation. All things being equal, putting more money into an economy from oil and gas sales would cause more inflation, not less.

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UsrHpns4rctct t1_iznsnhz wrote

Well, what you are saying is absolutely correct.

To try to go deeper into the matter (only speculations). A great part of Norwegians own their own house/apartment and most of their loans have a “free flowing interest”, so when the Norwegian bank puts up the interest it quickly affects the private economy. Combine this with the extreme rise in the price of electricity (10-12 times up) and the long “tradition” of using electricity for heating to a greater extent than other countries. These two factors contribute to a quick and greatly weakened buying power in the Norwegian population.

Are my speculation onto something plausible?

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adebar OP t1_iznw87f wrote

Someone who freely admits they are wrong! Online?! I never thought I'd live to see the day. Thank you for the civil discourse. :-D

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