1. Do you think a country the size of Iceland a Lilliputian is more or less...
Question:
1. Do you think a country the size of Iceland — a Lilliputian —is more or less sensitive to the potential impacts of global capital movements?
2. Many countries have used interest rate increases to protect their currencies for many years. What are the pros and cons of using this strategy?
3. How does the Iceland story fit with our understanding of the Impossible Trinity? In your opinion, which of the three elements of the Trinity should Iceland have taken steps to control more?
4. In the case of Iceland, the country was able to sustain a large current account deficit for several years, and at the same time have ever-rising interest rates and a stronger and stronger currency. Then one day, it all changed. How does that happen?
Purchasing and Supply Chain Management
ISBN: 978-1285869681
6th edition
Authors: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson