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Can we avoid another financial crisis Norway edition

Summary:
Norway has done a lot of things right, including discovering North Sea oil of course, but unlike the UK, using that to build a sovereign wealth fund, excellent infrastructure, and a diversified industrial base. But it has also accumulated the third highest level of private debt in the world (relative to GDP), and in the ...

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Norway has done a lot of things right, including discovering North Sea oil of course, but unlike the UK, using that to build a sovereign wealth fund, excellent infrastructure, and a diversified industrial base. But it has also accumulated the third highest level of private debt in the world (relative to GDP), and in the last twenty years, real house prices have increased fourfold. It is one of my prime candidates for a financial crisis, which may already be commencing with decelerating mortgage debt driving house prices down (finally!), and the recent trend to declining oil prices undercutting its enormous trade surplus.


Steve Keen
Steve Keen (born 28 March 1953) is an Australian-born, British-based economist and author. He considers himself a post-Keynesian, criticising neoclassical economics as inconsistent, unscientific and empirically unsupported. The major influences on Keen's thinking about economics include John Maynard Keynes, Karl Marx, Hyman Minsky, Piero Sraffa, Augusto Graziani, Joseph Alois Schumpeter, Thorstein Veblen, and François Quesnay.

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