Nobody downloaded yet

Macroeconomic Position of Iceland as of 2006 - Essay Example

Comments (0) Cite this document
Summary
This essay critically evaluates the economic performance of Iceland as of 2006. Iceland had an economy, that was primarily capitalistic, with an extensive welfare system that includes generous housing subsidies. The economy was characterized by a low unemployment and an even distribution of income…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Macroeconomic Position of Iceland as of 2006
Read TextPreview

Extract of sample "Macroeconomic Position of Iceland as of 2006"

Download file to see previous pages This essay provides a thorough economic analysis of the economic developments in the Icelandic economy in the year of 2006.
Ii is shown in the essay, that the national economy depended heavily on the fishing industry, which provided more than 60% of total export earnings and employs 12% of the work force.
Iceland’s economy had been diversifying into manufacturing and service industries in the last decade and new developments in software production, biotechnology, and financial services were taking place. The tourism sector was also expanding, with trends in eco-tourism such as whale watching, hiking, and nature tours growing steadily.
As Iceland had focused on leveling its financial landscape and opening its markets, it had created an imbalance in the economy. The resulting volatility threatened a return to the previous days of economic overheating.
The employment numbers were good, but any disruption of current output woull change that immediately. Inflation, driven by overheating real estate and investment markets, was growing. These issues had to be resolved immediately. Through prudent monetary policy, inflation could be tamed. By implementing wise fiscal policy, expenses and debt could be reduced.
In terms of fiscal policy, Iceland needed to adjust its approach so that the monetary policy could be adequately supported without resorting to continued and severe hikes in the interest rate. Simply, this meant tightening its budget maintenance, reducing its debt, and enhancing the environment for investment
...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macroeconomic Position of Iceland as of 2006 Essay”, n.d.)
Macroeconomic Position of Iceland as of 2006 Essay. Retrieved from https://studentshare.org/macro-microeconomics/1521541-macroeconomic-position-of-iceland-as-of-2006
(Macroeconomic Position of Iceland As of 2006 Essay)
Macroeconomic Position of Iceland As of 2006 Essay. https://studentshare.org/macro-microeconomics/1521541-macroeconomic-position-of-iceland-as-of-2006.
“Macroeconomic Position of Iceland As of 2006 Essay”, n.d. https://studentshare.org/macro-microeconomics/1521541-macroeconomic-position-of-iceland-as-of-2006.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomic Position of Iceland as of 2006

Macroeconomic

... has a direct negative impact on the national saving in the long run. It has been argued that in the long run there are chances that the saving and output are going to fall because the government would try to compensate for the revenue losses through changes in the policy; this may include tax hikes (Francis). However the effects of tax cut are in the long run would vary according to the taxpayers. Works Cited Francis, David R. Effects of the Tax Cut on Saving. The National Bureau of Economic Research. Web. 11 Jan. 2011. Mankiw, N. Gregory. Principles of Macroeconomics. 5th ed. Cengage Learning. Riley, Geoff. Fiscal Policy Effects. Tutor2u, 2006. Web. 11 Jan. 2011.... By utilizing "impact", "time", and "population affected", how Washington...
2 Pages(500 words)Essay

Macroeconomic

...? Macroeconomic Contents Introduction 3 Question a 3 Question b 4 Question c 6 Conclusion 8 References 9 Bibliography 10 Introduction High terms of trade are the characteristics of the current economy of Australia. It can be witnessed that the terms of trade has fallen in the recent months yet the rate has been historically high and volatile. The level of real income rose as the result of high terms of trade as well the inflation rate got reduced. The ratio between the prices of exports and the prices of imports are regarded as the terms of trade. With high rate of terms of trade the country will be able to obtain higher imports with relatively fewer amounts of exports. The volatility in the expenditures made by the consumers can... . The...
6 Pages(1500 words)Essay

MACROECONOMIC

...in Australia. The carbon pricing was introduced and made functional from July 2012. The pricing is to take effect in the form of tax that is to be put on the emissions of carbon. The pricing is meant to cut the emission of carbon in the Australian environment. These pricing is directed toward the level of carbon in the outputs and the inputs of product from the industry. The tax on carbon will have quite an effect on the macroeconomic environment in the sense that the tax might be passed down to the consumers who are the Australian people. The effect can be felt in the price of commodities. The effects of carbon pricing The Australian society is a very large consumer of electricity. This electricity is mainly produced by...
4 Pages(1000 words)Essay

MACROECONOMIC

...? MACROECONOMIC Contents Fiscal Policy 3 Instruments of fiscal policy and the effectiveness of the different measures in stimulating aggregate demand3 Fiscal policy stance 2012 (Australia) 5 Appropriateness of the fiscal policy stance 6 References 8 Fiscal Policy The term fiscal policy refers to the use of the revenue of the government as well as the spending for the welfare of the economy. The revenue of the government can be arranged through a variety of ways like taxation, sale of fixed assets, borrowings and consumption of fiscal reserves. The government try to use the fiscal policies to stimulate the level of aggregate demand in the economy (Kopcke, Tootell and Triest, 2010, p. 2). The objectives of economic growth, stability... of net...
3 Pages(750 words)Essay

MACROECONOMIC

...? Australia: Fiscal Policy Australia: Fiscal Policy Answer The government’s policy related to its spending and raising revenues is called fiscal policy. It associates matters of treasury and other public finance (Vitek, 2012). In other words, fiscal policy can be referred to as the method to raise or spend the government’s revenue in order to attain sustainable economical condition (Vitek, 2012). To cope with instable economical conditions (inflation, unemployment, and deflation) the government makes appropriate decisions to regulate the flow of cash and credit in an economy either by taking loans from the international financial bodies or by reducing the public tax burden (Perry, et al., 2008). Therefore, fiscal policy addresses... Australia:...
4 Pages(1000 words)Essay

Macroeconomic

...on the investor’s image about the significance of that organization. Stock markets often crash when the investors find exchange rates to be unfavourable and they expect negative uncertainties to commence in future. Economic downturns or recessions are often followed after stock market crumple. Recession is a situation when the overall spending in the economy falls. The velocity of circulation of money slows down during recession. The aggregate expenditure in an economy is the sum of total expenditures incurred in the nation. This includes consumption, investment, government expenditures and net exports (AE= C+I+G+NX). The aggregate expenditure line is a positive sloping line with a positive intercept....
5 Pages(1250 words)Essay

US Macroeconomic policy 2006-2008

...Running head: U.S economic policy and its effects 2006-2008. The Review of U.S Macroeconomic policy 2006-2008 s Abstract U.S economy had performed well during the last decade of 19th century and in the first five years of this millennium but the US economy did experience a shallow recession in 2001. But, since 2003, economy was in full recovery. The asset bubble of the late 1990s was one of the largest in history. Rather than allow this bubble to fully unwind, the Fed created more asset bubbles, especially in housing, leveraged finance, private equity and asset-backed securities from 2006 till now. In 2007, the American economy began to slow significantly, mostly...
7 Pages(1750 words)Research Paper

Government Failure in Iceland

...Research proposal Government failure in small societies: the relationship between legislative procedural discipline and administrative accountability. The case of Iceland. 1. Overview a. Overall context Iceland was strongly affected by the financial crisis in late 2008. Even though Iceland is a relatively small country in the last 10 years it succeeded in building up a banking sector 8 times larger than the country's GDP. Because of the "credit crunch" which happens to be a catastrophic worldwide event, Iceland turned out to be particularly vulnerable due to the ineffective public governance marked by extreme ties between financial supervisory institutions,...
5 Pages(1250 words)Essay

Macroeconomic

...The Morning After, Start Now” by Michael Tomasky discusses four vital issues that the newly re-elected president must address in his second term in the White House. These are fiscal cliff, climate change, immigration and foreign policy which all show some relevance to macroeconomic principles. The article addresses each of these issues and what Pres. Barack Obama must do to achieve good results together with the people who might be able to help him. Fiscal cliff, Tomasky suggests, will most probably be responded to with the impending tax increase proposal and government cuts on spending. Climate change may no longer be ignored and new policy points to carbon tax to deter carbon emissions. Immigration is another pressing...
1 Pages(250 words)Essay

Macroeconomic

...Macroeconomic Situation of US Macroeconomic Situation of US Since the start of the recessionary period of 2008, US have been trying to recover from several macroeconomic issues. Towards the end of March 2012, the unemployment rate of US stood at 8.2%, although US successfully created over 120k jobs in a time period of 7 months but it is still below the targeted increase in employment rate which is set at 200k which will help US solve its unemployment problem (OECD, 2012). The consumption levels and the rate of GDP is even increasing but at the rate of which a tortoise travels, this is because of increased oil prices and damaged confidence of the investors, while the Federal Reserve has...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macroeconomic Position of Iceland as of 2006 for FREE!

Contact Us