Economic Affairs No. 6: Indexation 101

No. 6

Date: January 2014
Author: Lúðvík Elíasson
Subject: Indexation 101 

The Central Bank has now published Economic Affairs no. 6: “Indexation 101”, by Lúdvík Elíasson. The paper discusses various aspects of price indexation of financial obligations and focuses on a number of points related to the application and impact of indexation.  The discussion is based on decades of experience of price indexation, both in Iceland and in other countries, and on extensive scholarly research on the effects of indexation.