Virus Causing 'Severe' Situation in Norway, Norges Bank Governor Says

The transcript discusses Norway's economic challenges due to COVID-19 and the measures taken by the central bank to mitigate the downturn. It highlights the impact of currency fluctuations and oil price drops on the economy and the banking sector's exposure to these issues. The central bank's response includes cutting interest rates and providing liquidity, but it acknowledges the limitations of these measures in preventing a severe downturn.

In what ways can monetary policy contribute to mitigating the downturn in the economy?

What is the significance of the oil price fall in relation to Norway's economic challenges?