Iceland considering inflation target for two years

ICELAND - Iceland adopted an inflation target on Mar 28, 2001. Mar Gudmundsson, chief economist of the central bank, said to CentralBankNet that discussions about an inflation target had been going on for two years. He also said that it was a complete suprise when two days later the Norges Bank also decided to adopt an inflation target.

Gudmundsson's full response is below:

"The discussion on the adoption of inflation targeting has been going on with ever increasing force since 1999. In a paper