Iceland: Recent Economic Developments
This paper reviews economic developments in Iceland during 1990–96. It analyzes the origins of the current economic expansion associated with a swing in the current account and in emerging inflation pressure. Three driving forces are emphasized: the positive supply shock affecting the fisheries; the...
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Format: | Report |
Language: | unknown |
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Online Access: | http://www.imf.org/external/pubs/cat/longres.aspx?sk=2190 |
Summary: | This paper reviews economic developments in Iceland during 1990–96. It analyzes the origins of the current economic expansion associated with a swing in the current account and in emerging inflation pressure. Three driving forces are emphasized: the positive supply shock affecting the fisheries; the expansion of the power intensive industry; and brisk increases in real wages over the past two years (1995–96). The paper highlights that the main sources of upside risks comprise the likely construction of a new aluminum smelter. ISCR;CR;demand;market; investment goods; consumer price inflation; HP filter; current account sustainability; asset price development; saving rate; tax system; saving-investment imbalance; Current account; Output gap; Personal income tax; Current account imbalances; Europe; Global |
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