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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Main Author: International Monetary Fund
Format: Report
Language:unknown
Subjects:
Iceland
Online Access:http://www.imf.org/external/pubs/cat/longres.aspx?sk=27442
id ftrepec:oai:RePEc:imf:imfwpa:90/20
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spelling ftrepec:oai:RePEc:imf:imfwpa:90/20 2024-04-14T08:13:25+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 2024-03-19T10:32:23Z 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. Report Iceland RePEc (Research Papers in Economics)
institution Open Polar
collection RePEc (Research Papers in Economics)
op_collection_id ftrepec
language unknown
description 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.
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
genre Iceland
genre_facet Iceland
op_relation http://www.imf.org/external/pubs/cat/longres.aspx?sk=27442
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