IDEAS home Printed from https://ideas.repec.org/a/mes/postke/v36y2014i3p491-512.html
   My bibliography  Save this article

Capital account regulation in Iceland: does anybody know what is going to happen?

Author

Listed:
  • Pablo Carmona

Abstract

This article analyzes the capital account regulation (CAR) applied in Iceland after the banking crash of October 2008, focusing on the determinants behind the implementation of this policy tool, its effects on economic performance, and its possible costs for the Icelandic economy. The previous literature on the topic is useful for these purposes but it does not provide an adequate framework for analyzing the Icelandic experience because Iceland is a very particular case within the group of countries that have historically resorted to CAR. Our main conclusions are that capital account regulation has been essential in stabilizing the currency after the banking crash, providing space for expansionary monetary policy, and keeping public debt yields low. Even though great uncertainty still surrounds the long-term prospects of the Icelandic economy, CAR implementation has been a step toward a promising future economic scenario.

Suggested Citation

  • Pablo Carmona, 2014. "Capital account regulation in Iceland: does anybody know what is going to happen?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 36(3), pages 491-512.
    • Handle: RePEc:mes:postke:v:36:y:2014:i:3:p:491-512
    DOI: 10.2753/PKE0160-3477360305
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/PKE0160-3477360305
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/PKE0160-3477360305?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:36:y:2014:i:3:p:491-512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MPKE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.