The Monetary Policy Committee of the Central Bank of Iceland: seven years on
The Central Bank of Iceland Monetary Policy Committee (MPC) has been active for more than seven years. When Iceland’s monetary framework was revised with a 2009 statutory amendment providing for the appointment of a monetary policy committee, consideration was given to international precedents on be...
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Language: | Icelandic |
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Institute of Business Research
2016
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Online Access: | http://www.efnahagsmal.is/article/view/b.2016.13.2.2 https://doi.org/10.24122/tve.b.2016.13.2.2 |
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fticelandunivojs:oai:ojs.hi.is:article/2442 2023-05-15T16:49:42+02:00 The Monetary Policy Committee of the Central Bank of Iceland: seven years on Peningastefnunefnd í sjö ár Vignisdóttir, Karen Áslaug 2016-12-15 application/pdf http://www.efnahagsmal.is/article/view/b.2016.13.2.2 https://doi.org/10.24122/tve.b.2016.13.2.2 isl ice Institute of Business Research http://www.efnahagsmal.is/article/view/b.2016.13.2.2/pdf http://www.efnahagsmal.is/article/view/b.2016.13.2.2 doi:10.24122/tve.b.2016.13.2.2 ##submission.copyrightStatement## Research in applied business and economics; Árg. 13, Nr 2 (2016); 1-19 Tímarit um viðskipti og efnahagsmál; Árg. 13, Nr 2 (2016); 1-19 1670-4851 1670-4444 Central banks monetary policy monetary policy committee voting E58 D71 D72 D78 Seðlabankar peningastefna peningastefnunefnd atkvæðagreiðslur info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 2016 fticelandunivojs https://doi.org/10.24122/tve.b.2016.13.2.2 2022-09-21T13:40:37Z The Central Bank of Iceland Monetary Policy Committee (MPC) has been active for more than seven years. When Iceland’s monetary framework was revised with a 2009 statutory amendment providing for the appointment of a monetary policy committee, consideration was given to international precedents on best practice for monetary decision-making. Other changes focused on increased transparency and credibility of monetary policy. A study of the MPC’s voting patterns during the period 2009-2015 reveals divergent points of view among Committee members. Nearly half of the MPC’s decisions were not unanimous: in one-third of instances, one member voted against the majority, and in nearly one-seventh of instances, two members voted against the majority. When there has been a disputed decision, the majority has consisted more often of both internal and external members than of internal members only. The composition of the minority has also varied somewhat over the period in question. The voting patterns of the Icelandic MPC appear to be similar to those in neighbouring countries with a similar monetary policy framework. The revision of the framework for monetary decision-making appears to have been a change for the better. The Icelandic economy has recovered from the financial crisis and appears to be better balanced than before. Inflation has been below the Central Bank’s inflation target for about two-and-a-half years, and long-term inflation expectations have subsided. It can be assumed that the success of monetary policy in recent years has played a role in anchoring expectations more firmly. Other factors have also played an important part in the recent economic recovery, however. Peningastefnunefnd Seðlabanka Íslands hefur starfað í meira en sjö ár. Þegar umgjörð peningamála var breytt með lagabreytingu árið 2009 sem kvað á um skipan peningastefnunefndarinnar var alþjóðleg reynsla af tilhögun ákvörðunartöku í peningamálum höfð til hliðsjónar. Jafnframt voru gerðar breytingar er miðuðu að auknu gagnsæi og trúverðugleika ... Article in Journal/Newspaper Iceland University of Iceland: Peer Reviewed Journals Gerðar ENVELOPE(-20.878,-20.878,63.834,63.834) Tímarit um viðskipti og efnahagsmál 13 2 1 |
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Open Polar |
collection |
University of Iceland: Peer Reviewed Journals |
op_collection_id |
fticelandunivojs |
language |
Icelandic |
topic |
Central banks monetary policy monetary policy committee voting E58 D71 D72 D78 Seðlabankar peningastefna peningastefnunefnd atkvæðagreiðslur |
spellingShingle |
Central banks monetary policy monetary policy committee voting E58 D71 D72 D78 Seðlabankar peningastefna peningastefnunefnd atkvæðagreiðslur Vignisdóttir, Karen Áslaug The Monetary Policy Committee of the Central Bank of Iceland: seven years on |
topic_facet |
Central banks monetary policy monetary policy committee voting E58 D71 D72 D78 Seðlabankar peningastefna peningastefnunefnd atkvæðagreiðslur |
description |
The Central Bank of Iceland Monetary Policy Committee (MPC) has been active for more than seven years. When Iceland’s monetary framework was revised with a 2009 statutory amendment providing for the appointment of a monetary policy committee, consideration was given to international precedents on best practice for monetary decision-making. Other changes focused on increased transparency and credibility of monetary policy. A study of the MPC’s voting patterns during the period 2009-2015 reveals divergent points of view among Committee members. Nearly half of the MPC’s decisions were not unanimous: in one-third of instances, one member voted against the majority, and in nearly one-seventh of instances, two members voted against the majority. When there has been a disputed decision, the majority has consisted more often of both internal and external members than of internal members only. The composition of the minority has also varied somewhat over the period in question. The voting patterns of the Icelandic MPC appear to be similar to those in neighbouring countries with a similar monetary policy framework. The revision of the framework for monetary decision-making appears to have been a change for the better. The Icelandic economy has recovered from the financial crisis and appears to be better balanced than before. Inflation has been below the Central Bank’s inflation target for about two-and-a-half years, and long-term inflation expectations have subsided. It can be assumed that the success of monetary policy in recent years has played a role in anchoring expectations more firmly. Other factors have also played an important part in the recent economic recovery, however. Peningastefnunefnd Seðlabanka Íslands hefur starfað í meira en sjö ár. Þegar umgjörð peningamála var breytt með lagabreytingu árið 2009 sem kvað á um skipan peningastefnunefndarinnar var alþjóðleg reynsla af tilhögun ákvörðunartöku í peningamálum höfð til hliðsjónar. Jafnframt voru gerðar breytingar er miðuðu að auknu gagnsæi og trúverðugleika ... |
format |
Article in Journal/Newspaper |
author |
Vignisdóttir, Karen Áslaug |
author_facet |
Vignisdóttir, Karen Áslaug |
author_sort |
Vignisdóttir, Karen Áslaug |
title |
The Monetary Policy Committee of the Central Bank of Iceland: seven years on |
title_short |
The Monetary Policy Committee of the Central Bank of Iceland: seven years on |
title_full |
The Monetary Policy Committee of the Central Bank of Iceland: seven years on |
title_fullStr |
The Monetary Policy Committee of the Central Bank of Iceland: seven years on |
title_full_unstemmed |
The Monetary Policy Committee of the Central Bank of Iceland: seven years on |
title_sort |
monetary policy committee of the central bank of iceland: seven years on |
publisher |
Institute of Business Research |
publishDate |
2016 |
url |
http://www.efnahagsmal.is/article/view/b.2016.13.2.2 https://doi.org/10.24122/tve.b.2016.13.2.2 |
long_lat |
ENVELOPE(-20.878,-20.878,63.834,63.834) |
geographic |
Gerðar |
geographic_facet |
Gerðar |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Research in applied business and economics; Árg. 13, Nr 2 (2016); 1-19 Tímarit um viðskipti og efnahagsmál; Árg. 13, Nr 2 (2016); 1-19 1670-4851 1670-4444 |
op_relation |
http://www.efnahagsmal.is/article/view/b.2016.13.2.2/pdf http://www.efnahagsmal.is/article/view/b.2016.13.2.2 doi:10.24122/tve.b.2016.13.2.2 |
op_rights |
##submission.copyrightStatement## |
op_doi |
https://doi.org/10.24122/tve.b.2016.13.2.2 |
container_title |
Tímarit um viðskipti og efnahagsmál |
container_volume |
13 |
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2 |
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1 |
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1766039896520130560 |