With only a year to go until the next Norwegian Parliamentary election, Statistics Norway's monthly releases of labor market data are becoming political events. If unemployment falls, the government brags about the successes of its economic policies; if it rises, the oppositions criticizes the government for not doing enough.

I find this quaint. For one thing, these monthly data are highly volatile, even though they are centered moving averages of the underlying, actually monthly, data. For another, the political debate is based on the implicit premise that fiscal and other economic policy is the main determinant of unemployment. It is not. Not only do external factors matter, in Norway's case, especially the state of the oil market. But the debate completely ignores the role of monetary policy. Norges Bank's charge is to be the first line of defense against weakening tendencies. Rising unemployment is thus a sign that the sentries at the gate have not done their job. Why does no politician mention this?

A third reason why I find this debate quaint is that the opposition's demands to "do more" invariably involves increased government spending. But, God forbid, that spending must not come from the sovereign wealth fund. Yet, with bond issuance prohibited by statute, that is the only marginal source of revenue for any Norwegian government, regardless of political color. So, the opposition must implicitly be arguing for tax increases or cuts in other spending. They don't mention which. How convenient!

Lastly, a dangerous though about the political role of Norges Bank. If it does ease further even if unemployment stays high, it will be making a case for the opposition, whether it intends to or not. I don't want to accuse the Bank of intending to go political errands. Yet, I wonder if they can avoid it in practice.