Iceland: Staff Report for the 2012 Article IV Consultation and First Post- Program Monitoring Discussion
The 2012 Article IV Consultation reports that Iceland’s fiscal consolidation is continuing, but at a slower pace. Moderate expenditure overruns materialized in 2011, which will partly spill over to 2012 and the medium term. A key priority is to put the medium-term fiscal path back on track, which ca...
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Format: | Report |
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Online Access: | http://www.imf.org/external/pubs/cat/longres.aspx?sk=25853 |
Summary: | The 2012 Article IV Consultation reports that Iceland’s fiscal consolidation is continuing, but at a slower pace. Moderate expenditure overruns materialized in 2011, which will partly spill over to 2012 and the medium term. A key priority is to put the medium-term fiscal path back on track, which can be achieved with additional fiscal measures of ½ percent of GDP. Lifting the capital controls remains an overarching policy challenge, given the significant locked-in funds. ISCR;CR;inflation outlook;inflation expectation;FDI route;anchor inflation expectation; monetary policy committee; pushed inflation; Capital controls; Loans; Income; Global; Europe |
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