| What happens to a wealthy, oil-reliant nation when crude prices collapse and unprecedented monetary easing threatens to scupper returns for its sovereign wealth fund? Yngve Slyngstad, who manages Norway's $900 billion wealth fund, has said many times in the past year that in a low-and even negative-interest rate world the fund will not be able to hit its expected 4 percent real return.
The real world impact is that fiscal spending will need to be checked. The Norwegian government has a self-imposed rule capping use of the fund's money in its budget to the expected return...............................................Full Article: Source
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