New Frontiers in the Euro Debate in Iceland
The debate on currency arrangements and monetary policy frameworks in lceland has been motivated by developments in lceland and internationally in recent decades. Historically, lcelanders' colonial experience and struggle to retain control of vital natural resources made them hesitant participa...
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ftmpra:oai::90607 2023-05-15T16:52:28+02:00 New Frontiers in the Euro Debate in Iceland Thorgeirsson, Thorsteinn 2018-10-12 application/pdf https://mpra.ub.uni-muenchen.de/90607/ https://mpra.ub.uni-muenchen.de/90607/1/MPRA_paper_90607.pdf en eng https://mpra.ub.uni-muenchen.de/90607/1/MPRA_paper_90607.pdf Thorgeirsson, Thorsteinn (2018): New Frontiers in the Euro Debate in Iceland. Published in: Prosperity through Trade and Structural Reform, Festschrift in Honor of Per Magnus Wijkman. Editors Emil Ems and Thorvaldur Gylfason, Dialogos, Stockholm, (12 October 2018): pp. 199-222. E12 - Keynes Keynesian Post-Keynesian E13 - Neoclassical E31 - Price Level Inflation Deflation E32 - Business Fluctuations Cycles E42 - Monetary Systems Standards Regimes Government and the Monetary System Payment Systems E52 - Monetary Policy E58 - Central Banks and Their Policies E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy Stabilization Treasury Policy E64 - Incomes Policy Price Policy N12 - U.S. Canada: 1913- N14 - Europe: 1913- N22 - U.S. N24 - Europe: 1913- O47 - Empirical Studies of Economic Growth Aggregate Productivity Cross-Country Output Convergence MPRA Paper NonPeerReviewed 2018 ftmpra 2023-04-09T04:59:31Z The debate on currency arrangements and monetary policy frameworks in lceland has been motivated by developments in lceland and internationally in recent decades. Historically, lcelanders' colonial experience and struggle to retain control of vital natural resources made them hesitant participants in the European integration process. While sidestepping direct participation in the process leading to EU and EMU membership, they joined EFTA, the EEA and Schengen. Economic growth and development have been rapid, but the modernisation and liberalisation of the economy have been attended by signi:ficant volatility in nominal and real variables. At the same time, the European integration process has continued with its own set of challenges. It is in this context that a vibrant debate has taken place on the choice of currency and associated policies. The main emphasis has been on whether to adopt the euro (through EU membership) or retain the Icelandic króna with the most efficacious monetary policy framework possible. This article offers a review of salient contributions to the debate and the main lessons drawn from it. The key themes of the debate involve the impact currency choice would have on economic growth and resilience to shocks. While the early debate was mostly concerned with trade-theoretic issues, institutional factors have become increasingly important. A new theory concerning a heretofore overlooked policy variable, the evolution of inequality as measured by the wage-productivity gap, is discussed. It is shown to be potentially important for economic and financial outcomes, with implications for the debate. Report Iceland Munich Personal RePEc Archive (MPRA - Ludwig-Maximilians-University Munich) Canada |
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Munich Personal RePEc Archive (MPRA - Ludwig-Maximilians-University Munich) |
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language |
English |
topic |
E12 - Keynes Keynesian Post-Keynesian E13 - Neoclassical E31 - Price Level Inflation Deflation E32 - Business Fluctuations Cycles E42 - Monetary Systems Standards Regimes Government and the Monetary System Payment Systems E52 - Monetary Policy E58 - Central Banks and Their Policies E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy Stabilization Treasury Policy E64 - Incomes Policy Price Policy N12 - U.S. Canada: 1913- N14 - Europe: 1913- N22 - U.S. N24 - Europe: 1913- O47 - Empirical Studies of Economic Growth Aggregate Productivity Cross-Country Output Convergence |
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E12 - Keynes Keynesian Post-Keynesian E13 - Neoclassical E31 - Price Level Inflation Deflation E32 - Business Fluctuations Cycles E42 - Monetary Systems Standards Regimes Government and the Monetary System Payment Systems E52 - Monetary Policy E58 - Central Banks and Their Policies E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy Stabilization Treasury Policy E64 - Incomes Policy Price Policy N12 - U.S. Canada: 1913- N14 - Europe: 1913- N22 - U.S. N24 - Europe: 1913- O47 - Empirical Studies of Economic Growth Aggregate Productivity Cross-Country Output Convergence Thorgeirsson, Thorsteinn New Frontiers in the Euro Debate in Iceland |
topic_facet |
E12 - Keynes Keynesian Post-Keynesian E13 - Neoclassical E31 - Price Level Inflation Deflation E32 - Business Fluctuations Cycles E42 - Monetary Systems Standards Regimes Government and the Monetary System Payment Systems E52 - Monetary Policy E58 - Central Banks and Their Policies E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy Stabilization Treasury Policy E64 - Incomes Policy Price Policy N12 - U.S. Canada: 1913- N14 - Europe: 1913- N22 - U.S. N24 - Europe: 1913- O47 - Empirical Studies of Economic Growth Aggregate Productivity Cross-Country Output Convergence |
description |
The debate on currency arrangements and monetary policy frameworks in lceland has been motivated by developments in lceland and internationally in recent decades. Historically, lcelanders' colonial experience and struggle to retain control of vital natural resources made them hesitant participants in the European integration process. While sidestepping direct participation in the process leading to EU and EMU membership, they joined EFTA, the EEA and Schengen. Economic growth and development have been rapid, but the modernisation and liberalisation of the economy have been attended by signi:ficant volatility in nominal and real variables. At the same time, the European integration process has continued with its own set of challenges. It is in this context that a vibrant debate has taken place on the choice of currency and associated policies. The main emphasis has been on whether to adopt the euro (through EU membership) or retain the Icelandic króna with the most efficacious monetary policy framework possible. This article offers a review of salient contributions to the debate and the main lessons drawn from it. The key themes of the debate involve the impact currency choice would have on economic growth and resilience to shocks. While the early debate was mostly concerned with trade-theoretic issues, institutional factors have become increasingly important. A new theory concerning a heretofore overlooked policy variable, the evolution of inequality as measured by the wage-productivity gap, is discussed. It is shown to be potentially important for economic and financial outcomes, with implications for the debate. |
format |
Report |
author |
Thorgeirsson, Thorsteinn |
author_facet |
Thorgeirsson, Thorsteinn |
author_sort |
Thorgeirsson, Thorsteinn |
title |
New Frontiers in the Euro Debate in Iceland |
title_short |
New Frontiers in the Euro Debate in Iceland |
title_full |
New Frontiers in the Euro Debate in Iceland |
title_fullStr |
New Frontiers in the Euro Debate in Iceland |
title_full_unstemmed |
New Frontiers in the Euro Debate in Iceland |
title_sort |
new frontiers in the euro debate in iceland |
publishDate |
2018 |
url |
https://mpra.ub.uni-muenchen.de/90607/ https://mpra.ub.uni-muenchen.de/90607/1/MPRA_paper_90607.pdf |
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Canada |
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Canada |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
https://mpra.ub.uni-muenchen.de/90607/1/MPRA_paper_90607.pdf Thorgeirsson, Thorsteinn (2018): New Frontiers in the Euro Debate in Iceland. Published in: Prosperity through Trade and Structural Reform, Festschrift in Honor of Per Magnus Wijkman. Editors Emil Ems and Thorvaldur Gylfason, Dialogos, Stockholm, (12 October 2018): pp. 199-222. |
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1766042768151412736 |