In an earlier post, I mentioned that the Norwegian form of currency is the Krone. This is so because of their independance from the European Union. Above is a depiction of the exchange rate for the last 5 years from the dollar to the krone. Clearly you can see it has risen quite a lot since 1996, which at that time it was already at 6.4 krone per 1 U.S. dollar. Norway's independant and insular mindset has contributed to its prosperity and economic stability since the early 1990's.

I mention the early 90's because, Norway had a huge financial crisis with it's banks, dating to around 1984, when lending limits and interest rates dropped to staggering levels, leaving nothing but debt in their wake. This problem has been somewhat alleviated due tomacroeconomic policies being instated to compensate for rising inflation rates.

Norwegian interest rates are currently higher on the krone than EU interest rates on the euro. The norwegian currencies appreciation against the euro is largely due to the above factors, as well as government finances and external trade balance.