Iceland paper reviews monetary policy in turbulent times


A Central Bank of Iceland paper published on Monday highlights the adverse effects on monetary policy in Iceland caused by the domestic banking crisis in 2008.

The paper's authors, Thorvardur Tjörvi Ólafsson, Asgerdur Pétursdóttir and Karen Vignisdóttir, use survey data on Icelandic firms to examine their price setting behaviour and the implications on monetary policy in Iceland. The survey which covers the summer of 2008, a few months prior to the collapse of the Icelandic banking system

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