qq音乐分组名,红木推广专家弘木传媒,我的故事以及背后的中国梦
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However the Icelanders refused the government bailout of the banks claiming that the banks have left the suffering allot and paying double debts of mortgages that resulted from the collapse of the Krona. Therefore, the government would have intervened by bailing out the banks under the pressure from the British and Dutch governments but the defiant residents refused the move by voting it pot in a referendum (Smeddum 2009 para 4).
Reconstruction 重建
According to Molin, (2009, para. 1), the economy of Iceland is set to recover from this year early. He argues that though the contraction of the economy was 7% last year, the, economy is set for a slow recovery. However, he adds that this would only happen if substantial investments in the energy sector and other related sectors of the economy are done in time. The investments in these sectors of the economy will increase production by increasing the employment of the Icelanders. The economy will start to recover though in a slow manner. Financial weaknesses should be closely monitored so that weaknesses can be corrected and previous mistakes of the financial institutions are not repeated. Molin (2009, para. 11) suggests that the country should seek EU membership immediately because the European Union and the Euro will help the Krona to stabilize and make the recovery process faster.
In addition to the above, Molin (2009, para. 12) argues that the fiscal measure that are corrective should be pursued by the government. At the initial stages, the government will increase its revenue base by increase the level of taxes but the government expenditure should increase in the long run in order to increase job creation (Molin, 2009, para. 13). .
Government overhaul 政府改革
First came the bankruptcy of the three major banks of Iceland then came the economic meltdown in the country. This led to the overhaul of the country. According to 'Iceland government' (2009, para. 3), the collapse was as a result of the failed talks between the coalition partners. The prime minister resigned over cancer claims while his successor resigned over claims bankruptcy stress. The whole government was overhauled and the new government was put in place. The new government that assumed power was advocated for the overhaul of the central bank board of governors. The government also working in collaboration with the British and the Dutch governments was to bail the bankrupt financial institutions out a move that the citizens of the Iceland refused in the referendum. The government also has faced challenges of demonstrations in the country ('Iceland government' 2009, para. 3),
European Union applications 欧洲联盟的应用
According to Molin, (2009, para. 20), Iceland has suffered the worst economic crisis experienced by any country in the world. The government on its part by denying responsibility paid the price by collapsing. There have been violent cases of protests in Iceland and all over Europe in countries like Latvian, Lithuania, Greece and Spain. He suggests that the Iceland should join the European Union as soon as possible. Its membership will highly assist the country in strengthening the Krona. In addition to that, the country will have the advantage of sharing the credibility of the European central bank (Molin, 2009, para. 15).
Lessons learned 经验教训
The financial crisis has plunged Iceland to turmoil causing it to suffer much. Despite the crisis and the problems that the Icelanders are going through, life must continue. But there are lessons that Europe and other countries have to learn from the experience from Iceland. The country is a small open economy that is exposed to the world economy. The crisis has left many jobless and business premises empty without clients. The world learns that it should not leave the financial market to work freely but instead they should be regulated to avoid situations that might lead to the economic collapse and recessions (Hoppe, 2008, para. 3-10).
Conclusion 结论
Iceland is a small country with a population of about 320,000 people. The country economy is a small open economy is linked to the world. Before the global recession the economy of the country was performing very well. The banks of the country collapsed after the world recession because of bankruptcy. The government also collapsed. The collapse fop the economy of the country led to many problems including losing of jobs increasing the rate of unemployment. The country needed bailout and the government was to bail out the business organizations in order to stimulate the economy. The country applied for the membership of EU. The reliance on the credibility of the EU bank will help the court y to gain some credibility and continue in growth.
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