Iceland: Challenging Times for Monetary and Fiscal Policies

Andrea de Michelisi iOECD

Organisation for Economic Co-operation and Development

关键词: exchange rate targeting;    fiscal consolidation;    efficiency of social spending;    inflation targeting;    fiscal policy framework;    public investment;    tax;    student-to-teacher ratio;    capital controls;    euro area;    inflation;    European Union;    optimal currency area;    vo;   

DOI  :  https://doi.org/10.1787/221000115525

学科分类：社会科学、人文和艺术（综合）

来源: OECD iLibrary

【 摘 要 】

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 paper 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.