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.
Nobody downloaded yet

Macroeconomic Position of Iceland - Assignment Example

Comments (0) Cite this document
Summary
Promoted by its tourism board as the land of fire and ice, Iceland is an island nation with a population of approximately 300,000 citizens. It is located in the North Atlantic between Europe and the North American continent and is often overlooked because of its diminutive size…
Download paper
GRAB THE BEST PAPER
Macroeconomic Position of Iceland
Read TextPreview

Extract of sample
Macroeconomic Position of Iceland

Iceland has a Scandinavian-type economy that is primarily capitalistic, yet there is an extensive welfare system that includes generous housing subsidies and the nation's domestic economy is characterized by low unemployment and a remarkably even distribution of income. (Iceland 2006: 7) The national economy depends heavily on the fishing industry, which provides more than 60% of total export earnings and employs 12% of the work force. The government is very sensitive to the issue of declining fish stocks as well as to fluctuations in world prices for its main exports: fish and fish products, aluminum, diatomite and ferrosilicon. (Economy of Iceland 2006: 4) Iceland's economy has been diversifying into manufacturing and service industries in the last decade and new developments in software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, with recent trends in eco-tourism such as whale watching, hiking, and nature tours growing steadily.
Iceland's economic performance has been characterized as "impressive," and is seen to be the direct result of the government "refocusing policies on financial stabilisation and market liberalisation." (Suppanz and Laubach 2005: 1) Although Iceland suffered the same fate as other modern, industrialized countries in the global recession of 2002, its most recent recovery "has been much more vigorous than expected, as buoyant household demand has reinforced the stimulatory effect of the large-scale aluminum-related investment projects underway." (Suppanz 2005: 1) In fact, the annual growth of GDP was a vigorous 4% in 2003 and 5.2% in 2004. (World Bank 2005: 1)
Thus, it can be fairly stated that the overall economy of Iceland is very strong; perhaps too strong. A major concern among policy makers now is inflation. The robust financial and property markets are driving a wage/price spiral that is exceeding the initial policy moves of the Central Bank. As discussed in further detail within the assessment portion of this paper, the Icelandic position toward stabelisation and liberalisation has improved the economic environment and the resulting productivity growth has given rise to a per capita income that is increasing at a faster rate than other European countries. (Suppanz 2005: 2) Predictably, as the result of this growth in consumer income, equity and property prices have increased significantly. If policy does not get this under control, then a correction is sure to follow. With only modest budget surpluses and a high external debt by international standards (Suppanz 2005: 2), the effects of such an adjustment in prices would present a fiscal crisis. Economic policy needs to focus on maintaining controlled, sustainable growth without over-heating the markets.

Descriptive Statistics
A study of the available statistics will provide a more accurate understanding of the macroeconomic issues present, and guide the discussion of policy options to address the problems.
The first area of study is that of domestic production. As noted previously, Iceland mainly exports fish and fish products, as it ramps up its manufacturing, service, and tourism industries. Although Gross Domestic Production (GDP) is not as high as it has been in times past, the data demonstrates a solid ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macroeconomic Position of Iceland Assignment Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from https://studentshare.net/politics/296793-macroeconomic-position-of-iceland
(Macroeconomic Position of Iceland Assignment Example | Topics and Well Written Essays - 2000 Words)
https://studentshare.net/politics/296793-macroeconomic-position-of-iceland.
“Macroeconomic Position of Iceland Assignment Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.net/politics/296793-macroeconomic-position-of-iceland.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
MACROECONOMIC and MICROECONOMIC ANALYSIS
The company is involved in geological exploration, transportation, storage, processing and marketing of hydrocarbons as well as generation and marketing of heat and electric power. It was established in 1989. Gazprom Russian Joint Stock Company came up in 1993 under the guidance of USSR gas industry ministry.
5 Pages(1250 words)Assignment
Macroeconomic Analysis of the Indian Economy
According to the paper exploration of these factors in an economy is therefore fundamental to the business’ intended investment and this paper analyzes macroeconomic environment in India, one of the economies that the organization can consider for its investments. Investing in a country that has no room for growth would for example stagnate an investment.
7 Pages(1750 words)Assignment
Macroeconomic Position of Iceland as of 2006
This essay mainly focuses on the provision of evaluation of the economy position of the country of Iceland and on the assessment of its macroeconomic policies and options. As the analysis shows, in 2006, the Icelandic economy was deemed strong and durable. The production sector was sturdy, the labor market was healthy, and inflation was low.
6 Pages(1500 words)Essay
Obama's position
Secondly, the president should have authority to order killing of a United States citizen or any other person who poses a security threat because it is
1 Pages(250 words)Assignment
Position in Healthcare
Generally, health promotion has been given several technical meanings but from a very concise perspective, I would define health
1 Pages(250 words)Assignment
Current macroeconomic situation
The USA government’s intervention saved the situation that could have otherwise worsened. Unemployment rate is at its topmost. Insufficient or lack of jobs implies that the consumer confidence alongside the sentiment of businesses is at risk. This is
2 Pages(500 words)Assignment
Macroeconomic in the US
Of late, the United States economy has faced many problems. This is because the United States economy has not recovered fully from the fiscal crisis in 2009 (Gliksberg, 2013). This fiscal
2 Pages(500 words)Assignment
Seminar in Macroeconomic Theory
In a bid to balance the budget, there will be a need to revise the taxation policies. There should be increased the tax on products that are harmful to the
3 Pages(750 words)Assignment
A documented position paper
This study examines the concept of global supply chain management by evaluating the case of Primark a global clothing manufacturer. Primark achieves its competitive strength by instituting and maintaining a strong global supply chain management
7 Pages(1750 words)Assignment
Position paper 1
This paper offers support to the aforementioned statement by drawing expansively from literatures by George and Lee (2005) and counter the objections raised by Thomson (1971) in an effort to support why the two lovebirds, Yelena
2 Pages(500 words)Assignment
Let us find you another Assignment on topic Macroeconomic Position of Iceland for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us