Monetary Indexation and Revenues from Money Creation: The Case of Iceland
This paper discusses the effects of monetary indexation on the revenues from monetization in Iceland. The paper starts by showing that monetization revenues fell sharply after indexation was introduced in 1979 and evaluates the different and partly ambiguous factors behind this development. The fisc...
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ftrepec:oai:RePEc:imf:imfwpa:1990/020 2024-04-14T08:13:29+00:00 Monetary Indexation and Revenues from Money Creation: The Case of Iceland International Monetary Fund http://www.imf.org/external/pubs/cat/longres.aspx?sk=27442 unknown http://www.imf.org/external/pubs/cat/longres.aspx?sk=27442 preprint ftrepec 2024-03-19T10:41:19Z This paper discusses the effects of monetary indexation on the revenues from monetization in Iceland. The paper starts by showing that monetization revenues fell sharply after indexation was introduced in 1979 and evaluates the different and partly ambiguous factors behind this development. The fiscal consequences are then examined in light of the fact that revenues from monetization have traditionally made up a substantial part of Government revenues in Iceland. Different policy options are simulated using the framework of the public finance approach to inflation. The simulations focus on the relation of fiscal deficits to inflation, output growth, and internal and external debt. WP;demand;interest rate;economic growth; monetary indexation; revenues from money creation; indexation scenario; financiable deficit; indexation period; inflation tax revenue; public finance; case of indexation; indexation of base money; indexation of financial assets; Switching-term deposit; Inflation; Currency issuance; Real interest rates; Monetary base; Demand for money Report Iceland RePEc (Research Papers in Economics) |
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This paper discusses the effects of monetary indexation on the revenues from monetization in Iceland. The paper starts by showing that monetization revenues fell sharply after indexation was introduced in 1979 and evaluates the different and partly ambiguous factors behind this development. The fiscal consequences are then examined in light of the fact that revenues from monetization have traditionally made up a substantial part of Government revenues in Iceland. Different policy options are simulated using the framework of the public finance approach to inflation. The simulations focus on the relation of fiscal deficits to inflation, output growth, and internal and external debt. WP;demand;interest rate;economic growth; monetary indexation; revenues from money creation; indexation scenario; financiable deficit; indexation period; inflation tax revenue; public finance; case of indexation; indexation of base money; indexation of financial assets; Switching-term deposit; Inflation; Currency issuance; Real interest rates; Monetary base; Demand for money |
format |
Report |
author |
International Monetary Fund |
spellingShingle |
International Monetary Fund Monetary Indexation and Revenues from Money Creation: The Case of Iceland |
author_facet |
International Monetary Fund |
author_sort |
International Monetary Fund |
title |
Monetary Indexation and Revenues from Money Creation: The Case of Iceland |
title_short |
Monetary Indexation and Revenues from Money Creation: The Case of Iceland |
title_full |
Monetary Indexation and Revenues from Money Creation: The Case of Iceland |
title_fullStr |
Monetary Indexation and Revenues from Money Creation: The Case of Iceland |
title_full_unstemmed |
Monetary Indexation and Revenues from Money Creation: The Case of Iceland |
title_sort |
monetary indexation and revenues from money creation: the case of iceland |
url |
http://www.imf.org/external/pubs/cat/longres.aspx?sk=27442 |
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Iceland |
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Iceland |
op_relation |
http://www.imf.org/external/pubs/cat/longres.aspx?sk=27442 |
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1796311472895164416 |