The Dutch disease in reverse: Iceland's natural experiment
Abundant natural resources brought Iceland a systemically overvalued currency, with adverse effects on the secondary tradable sector. During 2003-2008 another national treasure, the sovereign's AAA rating, was used to attract foreign capital, elevating the real exchange rate even further. The f...
| Main Authors: | , |
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| Format: | Working paper |
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University of Oxford
2014
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| _version_ | 1826264382195105792 |
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| author | Gylfason, T Zoega, G |
| author_facet | Gylfason, T Zoega, G |
| author_sort | Gylfason, T |
| collection | OXFORD |
| description | Abundant natural resources brought Iceland a systemically overvalued currency, with adverse effects on the secondary tradable sector. During 2003-2008 another national treasure, the sovereign's AAA rating, was used to attract foreign capital, elevating the real exchange rate even further. The financial collapse in 2008 left the country with a large foreign debt without the possibility of rollovers in international capital markets. This offset some of the effect of the natural resources on the real exchange rate; in effect, this was the Dutch disease in reverse as witnessed, in particular, by a massive increase in the number of tourists in recent years. |
| first_indexed | 2024-03-06T20:06:54Z |
| format | Working paper |
| id | oxford-uuid:292ffa98-285e-4cf7-9a7e-d45d14e12656 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T20:06:54Z |
| publishDate | 2014 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:292ffa98-285e-4cf7-9a7e-d45d14e126562022-03-26T12:17:42ZThe Dutch disease in reverse: Iceland's natural experimentWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:292ffa98-285e-4cf7-9a7e-d45d14e12656Bulk import via SwordSymplectic ElementsUniversity of Oxford2014Gylfason, TZoega, GAbundant natural resources brought Iceland a systemically overvalued currency, with adverse effects on the secondary tradable sector. During 2003-2008 another national treasure, the sovereign's AAA rating, was used to attract foreign capital, elevating the real exchange rate even further. The financial collapse in 2008 left the country with a large foreign debt without the possibility of rollovers in international capital markets. This offset some of the effect of the natural resources on the real exchange rate; in effect, this was the Dutch disease in reverse as witnessed, in particular, by a massive increase in the number of tourists in recent years. |
| spellingShingle | Gylfason, T Zoega, G The Dutch disease in reverse: Iceland's natural experiment |
| title | The Dutch disease in reverse: Iceland's natural experiment |
| title_full | The Dutch disease in reverse: Iceland's natural experiment |
| title_fullStr | The Dutch disease in reverse: Iceland's natural experiment |
| title_full_unstemmed | The Dutch disease in reverse: Iceland's natural experiment |
| title_short | The Dutch disease in reverse: Iceland's natural experiment |
| title_sort | dutch disease in reverse iceland s natural experiment |
| work_keys_str_mv | AT gylfasont thedutchdiseaseinreverseicelandsnaturalexperiment AT zoegag thedutchdiseaseinreverseicelandsnaturalexperiment AT gylfasont dutchdiseaseinreverseicelandsnaturalexperiment AT zoegag dutchdiseaseinreverseicelandsnaturalexperiment |