In particular, the model features wage bargaining between a union representing workers and firms in the exposed sector to capture the institutional framework for wage setting in Norway, a sovereign wealth fund—the Government Pension Fund Global (GPFG)—and related constraints on the use of resources from the GPFG for fiscal financing purposes, and a rich description of the fiscal authority in Norway and its links with the rest of the economy. The model parameters are determined partly through a calibration of the model’s steady state to long-run averages in the data and partly through Bayesian estimation using quarterly time series for the Norwegian economy for the period 1999Q1 to 2024Q4. Mechanisms have also been introduced to handle the exceptional movements in macroeconomic aggregates during the coronavirus pandemic. We illustrate the properties of the model by showing how it responds to some common macroeconomic shocks, by presenting a number of fiscal policy simulations that illustrate typical use cases, and by comparing fiscal multipliers with those from existing models.