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Norway was a small and relatively poor open economy when it discovered large oil fields in 1969. Exploiting oil fields requires extremely large machinery. Given

Norway was a small and relatively poor open economy when it discovered large oil fields in 1969. Exploiting oil fields requires extremely large machinery. Given the large machines needed to extract oil from the ground and the fact that Norway can- not rely on selling large amounts of oil forever, argue that the behavior of Norway's current account since 1960 is economically sensible.

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