Indexation and Monetary Policy in Iceland: Is the transmission mechanism of indexed bonds and loans as effective as that of nominal bonds?
This thesis examines the transmission mechanism of indexed bonds and loans in comparison to nominal bonds in the context of Iceland's monetary policy. The study analyses the effectiveness of indexed bonds and loans in transmitting monetary policy, in the form of the policy rate, and their impact on the economy by using a VAR model. The study explores the historical background of indexation in
