Thorsteinn Thorgeirsson
Thorsteinn Thorgeirsson (Born September 17, 1955 in Reykjavik, Iceland) is an Icelandic economist. From January 1, 2005, he is Director-General in the Finance Ministry of Iceland.
Education
Thorsteinn holds an M.Phil. degree in Economics from the New School for Social Research in New York, NY and Master of Arts degree in Economics from Vanderbilt University in Nashville, TN. He has cited Robert Heilbroner, John Eatwell and Ravi Batra as influential teachers. He obtained the Bachelor of Arts degree in Economics from the American University in Washington DC. After his B.A. studies, he was an intern with U.S. Representative Lawrence P. McDonald in 1980.
Career
Prior to his present position, Thorsteinn was Chief economist for the Federation of Icelandic Industries in Reykjavik from 2001 to 2004. He was an Economist in the Economics Department Of the OECD in Paris, France from 1995 to 2000. Before that, he was an economist in the Economics Department of the EFTA in Geneva, Switzerland (1993-1995), the Economic Department of the Central Bank of Iceland (1991-1993) and the Industrial Consulting Group of DRI/McGraw-Hill, Inc. in San Francisco (1986-1990).
Public debate
Thorsteinn has written numerous academic articles, official reports and op ed pieces in newspapers or magazines. He has often appeared on tv and radio and participated in conferences. In 2001-2004, Thorsteinn was an ACTIVE participant in the debate in Iceland concerning membership in the European Union during which time he publicly advocated the adoption of the euro while warning AbOUT potential problems with the króna in the context of liberalized capital flows. At the same time, he advised to examine other ways to adopt the euro if EU membership was a sticking point. He warned against calls for a multi-currency system and advised of the benefits of the euro (on the basis of EU membership) for financial stability. In 2003, he warned of an exchange rate rise and subsequent collapse of the króna following the expected high interest rate policy path of the Central Bank during a FDI-led boom. As the increasingly international commercial banks could inject low cost foreign funds into the economy, an overly restrictive monetary policy was likely to exacerbate imbalances in the economy and undermine financial stability. Given the circumstances, he suggested the Icelandic Central Bank adopt a low interest rate path during the boom, while calling for restraint in fiscal policy, bank lending and private sector decisions. In May 2004, the central bank began to raise its policy interest rates from 5.3%, and by December 2007 it stood at 13.75%. Over this period, significant inflows of foreign capital took place, the exchange rate appreciated, bank lending surged and debt levels rose. The Icelandic króna and banking system collapsed in the Autumn of 2008 when global financial markets seized up.
Recent professional activities
In addition to overseeing the Economic Department of the ministry, Thorsteinn has served as an official spokesman on economic policy in international fora, including at the IMF, OECD, EFTA and EU..
Private life
Thorsteinn lives in Reykjavík and is married and a father of three children.
Bibliography
- 2001, Increasing simplicity, neutrality and sustainability: a basis for tax reform in Iceland, with Richard Herd, OECD Econ. Dept. Working Paper No. 292, Paris, France.1
- 2001, Contributions of financial systems to growth in OECD countries, with Michael Leahy, Sebastian Schich, Gert Wehinger and Florian Pelgrin, OECD Econ. Dept. Working Paper No. 280, Paris, France.2
- 2000, New issues in public debt management: governement surpluses in several OECD countries, the common currency in Europe and rapidly rising debt in Japan, with Paul Mylonas, Sebastian Schich and Gert Wehinger, OECD Econ. Dept. Working Paper No. 239, Paris, France.3
- 1996, Maximum likelihood estimation of cointegration in exchange rate models for seven inflationary OECD countries, with David O. Cushman and Sang Sub Lee, Journal of International Money and Finance, Volume 15, Issue 3, June, Pages 337-368.4
- 1988, Exchange rate determination in Iceland during the period of a managed float, M.A. thesis, May, Vanderbilt University, Nashville, TN.5