Challenging times for monetary and fiscal policies

In this: publication
By this: publisher
In this Subject: Economics

Source: OECD Economic Surveys, Volume 2009, Number 16, August 2009 , pp. 53-97(45)

Publisher: OECD - Organisation for Economic Co-operation and Development

Buy & download fulltext article:

Price: $56.00 plus tax (Refund Policy)

Abstract:

Monetary and fiscal policies face huge challenges: the banking sector has collapsed; the economy is in the midst of a deep recession; the exchange rate has plunged; capital flows have been frozen; inflation is elevated; public debt has risen; source of revenues have disappeared; social needs have increased; and the unemployment insurance fund has been nearly depleted. Against this difficult background, this chapter discusses what policy makers should do in order to restore balance in the Icelandic economy and lay out the foundations for a sustainable recovery. The key recommendations are to seek entry in the euro area and implement the fiscal consolidation measures necessary to comply with the IMF programme.

Document Type: Review article

Publication date: 2009-08-01