Iceland : Selected Issues

1ISLEA2006002 Image
Price:  $15.00

Release Date: © August, 2006
ISBN : 978-1-45181-933-5
Stock #: 1ISLEA2006002
English
Stock Status: On back-order

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Description

Given its small size and openness, the Icelandic economy has been subject to large shocks. Systematic coordination of monetary and fiscal policy, however, could help improve the inflation-output variability trade-off. The fiscal rule is designed to simultaneously ensure a consistently countercyclical fiscal stance and achieve a stable public debt target. The parameter values of the model are estimated from the quarterly data using a Bayesian technique. To assess how the introduction of the fiscal policy changes the inflation-output variability trade-off in Iceland, the paper compares the efficiency policy frontiers.

Taxonomy

Economic policy , Fiscal policy , Inflation , Monetary policy




More publications in this series: IMF Staff Country Reports