Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion

This 2007 Article IV Consultation highlights that boom in private consumption in Iceland was facilitated by easing household credit conditions, tax cuts, rapidly rising housing and equity wealth, and an appreciating real exchange rate. As a result, the output gap peaked at over 5 percent in 2005, de...

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Main Author: International Monetary Fund
Format: Report
Language:unknown
Subjects:
Iceland
Online Access:http://www.imf.org/external/pubs/cat/longres.aspx?sk=21291
id ftrepec:oai:RePEc:imf:imfscr:2007/295
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spelling ftrepec:oai:RePEc:imf:imfscr:2007/295 2024-04-14T08:13:32+00:00 Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion International Monetary Fund http://www.imf.org/external/pubs/cat/longres.aspx?sk=21291 unknown http://www.imf.org/external/pubs/cat/longres.aspx?sk=21291 preprint ftrepec 2024-03-19T10:41:22Z This 2007 Article IV Consultation highlights that boom in private consumption in Iceland was facilitated by easing household credit conditions, tax cuts, rapidly rising housing and equity wealth, and an appreciating real exchange rate. As a result, the output gap peaked at over 5 percent in 2005, declining only modestly in 2006. Record current account deficits and credit downgrades early in 2007 caused little market disruption, in part reflecting a healthy financial sector. The exchange rate remained strong, and confidence in Icelandic banks stayed high. ISCR;CR;anchor inflation expectation;debt;Last Article IV consultation;derivative; record current account deficit; inflation well; Eurobond carry trade; headline inflation; Loans; Fiscal stance; Private consumption; Inflation; Eastern Europe; Global Report Iceland RePEc (Research Papers in Economics)
institution Open Polar
collection RePEc (Research Papers in Economics)
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language unknown
description This 2007 Article IV Consultation highlights that boom in private consumption in Iceland was facilitated by easing household credit conditions, tax cuts, rapidly rising housing and equity wealth, and an appreciating real exchange rate. As a result, the output gap peaked at over 5 percent in 2005, declining only modestly in 2006. Record current account deficits and credit downgrades early in 2007 caused little market disruption, in part reflecting a healthy financial sector. The exchange rate remained strong, and confidence in Icelandic banks stayed high. ISCR;CR;anchor inflation expectation;debt;Last Article IV consultation;derivative; record current account deficit; inflation well; Eurobond carry trade; headline inflation; Loans; Fiscal stance; Private consumption; Inflation; Eastern Europe; Global
format Report
author International Monetary Fund
spellingShingle International Monetary Fund
Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
author_facet International Monetary Fund
author_sort International Monetary Fund
title Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
title_short Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
title_full Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
title_fullStr Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
title_full_unstemmed Iceland: 2007 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
title_sort iceland: 2007 article iv consultation: staff report; and public information notice on the executive board discussion
url http://www.imf.org/external/pubs/cat/longres.aspx?sk=21291
genre Iceland
genre_facet Iceland
op_relation http://www.imf.org/external/pubs/cat/longres.aspx?sk=21291
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