Iceland in the Eurovision Song Contest 2014 compete with at the Eurovision Song Contest. "Lífið kviknar á ný" was performed in English as "Up and Away", while "Enga fordóma" was performed in a mix of Icelandic and English. Televoting solely selected "Enga fordóma" performed by Pollapönk as the winner in the second round. As winners of the competition, Pollapönk won a monetary prize of 1 million Icelandic króna and the right to represent Iceland in Copenhagen. During the semi-final allocation draw on 20 January 2014 at the Copenhagen City Hall, Iceland was drawn to compete in the first half of the first semi-final on 6 May 2014.
Monetary policy are made in response to various market indicators in an attempt to forecast economic trends and in so doing keep the market on track towards achieving the defined inflation target. For example, one simple method of inflation targeting called the Taylor rule adjusts the interest rate in response to changes in the inflation rate and the output gap. The rule was proposed by John B. Taylor of Stanford University. The inflation targeting approach to monetary policy approach was pioneered in New Zealand. It has been used in Australia, Brazil, Canada, Chile, Colombia, the Czech Republic, Hungary, New Zealand, Norway, Iceland,