This 2009 edition of OECD's periodic survey of Iceland's economy examines the impact of the financial crisis and makes recommendation on how it should be managed.
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OECD Economic Surveys: Iceland 2009
Published on September 2009
Report Summary
This 2009 edition of OECD's periodic survey of Iceland's economy examines the impact of the financial crisis and makes
recommendation on how it should be managed.
Table of Content
Executive Summary
Assessment and Recommendations
Chapter 1. The Financial and Economic Crisis
-Iceland's three main banks became vulnerable to a deterioration in global financial markets
-Private sector balance sheets became vulnerable after a rapid expansion
-An unsustainable, domestic-demand led economic boom developed
-The banks were unable to resist the deterioration in global financial markets
-Aftermath of the collapse of Iceland's main banks
-Prudential supervision and regulation need to be strengthened
-Annex 1.A1. Progress in structural reform
Chapter 2. Challenging Times for Monetary and Fiscal Policy
-The limits of monetary policy in a very small open economy
-The future of monetary policy
-Substantial fiscal consolidation measures are urgently needed
-Measures to increase public revenues
-Measures to contain public spending
-Concluding remarks
-Bibliography
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