{
  "title": "Iceland: Selected Issues",
  "publication": "IMF Staff Country Reports, December 19, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/12/19/iceland-selected-issues-48892",
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  "summary": "This Selected Issues paper examines scope for improving Iceland’s fiscal framework. Iceland’s fiscal framework provides for a forward-looking exercise in consolidated fiscal planning.",
  "sections": [
    {
      "heading": "Overview and purpose",
      "content": "- Publication date: December 19, 2019\n- This Selected Issues paper examines scope for improving Iceland’s fiscal framework.\n- Focus areas: Fiscal policy, Fiscal rules, Fiscal stance, Output gap, Production, Public debt."
    },
    {
      "heading": "Key findings",
      "content": "- Iceland’s fiscal framework provides for a forward-looking exercise in consolidated fiscal planning.\n- The Icelandic fiscal framework shares most elements of successful fiscal frameworks but would benefit from more structured guidance in dealing with cyclical fluctuations.\n- The framework is backed by a firm legal basis that reflects political support for the fiscal policy objectives, covers the consolidated general government, and is based on sound accounting practices and budget management arrangements.\n- The current parameters of the policy rules have a bias to reduce net public debt and gradually build fiscal space to deal with adverse shocks to economic activity."
    },
    {
      "heading": "Policy proposals and implications",
      "content": "- Adding a primary structural balance rule to the framework would ensure a countercyclical fiscal policy but would add significant complexity.\n- Once the net public debt reaches a socially desirable level, the fiscal rule parameters may be modified to keep net public debt fluctuating around that level."
    },
    {
      "heading": "Keywords and thematic tags",
      "content": "- countercyclical fiscal policy\n- CR\n- disp-formula id\n- fiscal policy statement\n- Fiscal rules\n- Fiscal stance\n- Global\n- interest rate\n- ISCR\n- Output gap\n- primary spending\n- spending ratio"
    },
    {
      "heading": "Publication metadata and identifiers",
      "content": "- Pages: 24\n- Volume: 2019\n- Issue: 376\n- Series: Country Report No. 2019/376\n- DOI: https://doi.org/10.5089/9781513523682.002\n- Stock No: 1ISLEA2019002\n- ISBN: 9781513523682\n- ISSN: 1934-7685\n\nSource: Iceland: Selected Issues (IMF Staff Country Reports 2019, 376), December 19, 2019.\n\n---\n\n Content in this bundle\n\n- Iceland: Selected Issues; IMF Country Report No. 19/376; December 4, 2019\n  - Iceland: Selected Issues; IMF Country Report No. 19/376; December 4, 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Iceland: Selected Issues; IMF Country Report No. 19/376; December 4, 2019 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: December 19, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513523682.002",
    "Publication date: December 19, 2019",
    "This Selected Issues paper examines scope for improving Iceland’s fiscal framework.",
    "Focus areas: Fiscal policy, Fiscal rules, Fiscal stance, Output gap, Production, Public debt.",
    "Iceland’s fiscal framework provides for a forward-looking exercise in consolidated fiscal planning.",
    "The Icelandic fiscal framework shares most elements of successful fiscal frameworks but would benefit from more structured guidance in dealing with cyclical fluctuations.",
    "The framework is backed by a firm legal basis that reflects political support for the fiscal policy objectives, covers the consolidated general government, and is based on sound accounting practices and budget management arrangements.",
    "The current parameters of the policy rules have a bias to reduce net public debt and gradually build fiscal space to deal with adverse shocks to economic activity.",
    "Adding a primary structural balance rule to the framework would ensure a countercyclical fiscal policy but would add significant complexity.",
    "Once the net public debt reaches a socially desirable level, the fiscal rule parameters may be modified to keep net public debt fluctuating around that level.",
    "countercyclical fiscal policy",
    "CR",
    "disp-formula id",
    "fiscal policy statement",
    "Global",
    "interest rate",
    "ISCR",
    "primary spending",
    "spending ratio",
    "Pages: 24",
    "Volume: 2019",
    "Issue: 376",
    "Series: Country Report No. 2019/376",
    "DOI: https://doi.org/10.5089/9781513523682.002",
    "Stock No: 1ISLEA2019002",
    "ISBN: 9781513523682",
    "ISSN: 1934-7685",
    "**Iceland: Selected Issues; IMF Country Report No. 19/376; December 4, 2019**"
  ],
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