Advanced

Iceland Should Replace Its Central Bank with a Currency Board.

Andersson, Fredrik N G LU and Jonung, Lars LU (2019) p.349-349
Abstract (Swedish)
In this contribution, we discuss the menu of policy regimes available for Iceland. Each regime is evaluated against the characteristics of the Icelandic economy. We start with a short description of the Icelandic economy. We then examine the costs and benefts of alternative monetary regimes. We conclude that no regime Iceland has tried since attaining full sovereignty in 1918 has provided economic and financial stability in the long run. We reach the conclusion that Iceland should follow the example of some other small economies and microstates and settle on a currency board, in this case with the euro as the anchor currency. To ensure the sustainability of the currency board, we recommend additional reforms of the labour market and of the... (More)
In this contribution, we discuss the menu of policy regimes available for Iceland. Each regime is evaluated against the characteristics of the Icelandic economy. We start with a short description of the Icelandic economy. We then examine the costs and benefts of alternative monetary regimes. We conclude that no regime Iceland has tried since attaining full sovereignty in 1918 has provided economic and financial stability in the long run. We reach the conclusion that Iceland should follow the example of some other small economies and microstates and settle on a currency board, in this case with the euro as the anchor currency. To ensure the sustainability of the currency board, we recommend additional reforms of the labour market and of the fiscal framework of Iceland. (Less)
Abstract
In this contribution, we discuss the menu of policy regimes available for Iceland. Each regime is evaluated against the characteristics of the Icelandic economy. We start with a short description of the Icelandic economy. We then examine the costs and benefts of alternative monetary regimes. We conclude that no regime Iceland has tried since attaining full sovereignty in 1918 has provided economic and financial stability in the long run. We reach the conclusion that Iceland
should follow the example of some other small economies and microstates and settle on a currency board, in this case with the euro as the anchor currency. To ensure the sustainability of the currency board, we recommend additional reforms of the labour market and of... (More)
In this contribution, we discuss the menu of policy regimes available for Iceland. Each regime is evaluated against the characteristics of the Icelandic economy. We start with a short description of the Icelandic economy. We then examine the costs and benefts of alternative monetary regimes. We conclude that no regime Iceland has tried since attaining full sovereignty in 1918 has provided economic and financial stability in the long run. We reach the conclusion that Iceland
should follow the example of some other small economies and microstates and settle on a currency board, in this case with the euro as the anchor currency. To ensure the sustainability of the currency board, we recommend additional reforms of the labour market and of the fiscal framework of Iceland. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
iceland, monetary policy, currency board, Financial Crisis, iceland, monetary policy, currency board, finacial crisis
host publication
The 2008 Global Financial Crisis in Retrospect.
editor
Aliber, Robert Z.; Zoega, Gylfi; and
pages
369 pages
publisher
Palgrave Macmillan
language
English
LU publication?
yes
id
5904b3fd-84eb-492b-90f5-c54d73560bf4
alternative location
https://link.springer.com/book/10.1007/978-3-030-12395-6
https://link.springer.com/content/pdf/10.1007%2F978-3-030-12395-6_18.pdf
date added to LUP
2019-06-14 09:11:12
date last changed
2019-06-17 09:01:38
@inbook{5904b3fd-84eb-492b-90f5-c54d73560bf4,
  abstract     = {In this contribution, we discuss the menu of policy regimes available for Iceland. Each regime is evaluated against the characteristics of the Icelandic economy. We start with a short description of the Icelandic economy. We then examine the costs and benefts of alternative monetary regimes. We conclude that no regime Iceland has tried since attaining full sovereignty in 1918 has provided economic and financial stability in the long run. We reach the conclusion that Iceland<br/>should follow the example of some other small economies and microstates and settle on a currency board, in this case with the euro as the anchor currency. To ensure the sustainability of the currency board, we recommend additional reforms of the labour market and of the fiscal framework of Iceland.},
  author       = {Andersson, Fredrik N G and Jonung, Lars},
  editor       = {Aliber, Robert Z. and Zoega, Gylfi},
  keyword      = {iceland,monetary policy,currency board,Financial Crisis,iceland,monetary policy,currency board,finacial crisis},
  language     = {eng},
  month        = {06},
  pages        = {349--349},
  publisher    = {Palgrave Macmillan},
  title        = {Iceland Should Replace Its Central Bank with a Currency Board.},
  year         = {2019},
}