exhibiting signs of overheating, with imbalances evident in inflation, the current account, and external debt. GDP grew at an …

This Selected Issues paper for Iceland reports that it faces a considerably less favorable inflation-output variability … of inflation breaching the tolerance band and help to lower the probability of such events occurring. To effectively … target inflation, central banks need to be forward looking, responding early to prospective demand pressures. Having housing …

lowering inflation. Such recent developments have brought to the forefront the idea that freely mobile capital, independent … all three. Inflation-targeting regimes being adopted by many countries provide a way of resolving this dilemma. …