Iceland; Selected Issues

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 countercyclica...

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Main Author: International Monetary Fund
Format: Report
Language:unknown
Subjects:
Iceland
Online Access:http://www.imf.org/external/pubs/cat/longres.aspx?sk=19528
id ftrepec:oai:RePEc:imf:imfscr:06/297
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spelling ftrepec:oai:RePEc:imf:imfscr:06/297 2024-04-14T08:13:26+00:00 Iceland; Selected Issues International Monetary Fund http://www.imf.org/external/pubs/cat/longres.aspx?sk=19528 unknown http://www.imf.org/external/pubs/cat/longres.aspx?sk=19528 preprint ftrepec 2024-03-19T10:32:22Z 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. Fiscal policy;Financial soundness indicators;Financial risk;Bank soundness;Bank credit;Selected issues;Iceland;Inflation;Monetary policy;Liquidity;fiscal rule, public debt, exchange rate Report Iceland RePEc (Research Papers in Economics)
institution Open Polar
collection RePEc (Research Papers in Economics)
op_collection_id ftrepec
language unknown
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. Fiscal policy;Financial soundness indicators;Financial risk;Bank soundness;Bank credit;Selected issues;Iceland;Inflation;Monetary policy;Liquidity;fiscal rule, public debt, exchange rate
format Report
author International Monetary Fund
spellingShingle International Monetary Fund
Iceland; Selected Issues
author_facet International Monetary Fund
author_sort International Monetary Fund
title Iceland; Selected Issues
title_short Iceland; Selected Issues
title_full Iceland; Selected Issues
title_fullStr Iceland; Selected Issues
title_full_unstemmed Iceland; Selected Issues
title_sort iceland; selected issues
url http://www.imf.org/external/pubs/cat/longres.aspx?sk=19528
genre Iceland
genre_facet Iceland
op_relation http://www.imf.org/external/pubs/cat/longres.aspx?sk=19528
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