Revise paper

This paper must focus on content and paint a very clear picture of Iceland's financial crisis, the macroeconomic policies and capital controls implemented as a result, and the specific effects those policies had on the different factors used to measure the economic stability of Iceland. A clear understanding of macroeconomics is needed so that a correct analysis of data is made leading to the crisis as well as following the crisis during recovery. Which fiscal and monetary policies were implemented and explanations of how and why fiscal/monetary policies worked is key.

The paper has a lot of words but does not go into the real meat of the subject in places. Not much more is said in the paper than the bullet points that were sent over from the preso. Take for example the following:

Stable macroeconomic policies have created a better focus on the country development. The challenges that have been witnessed in the country have created a higher level of concentration where the government has sought to integrate different measures that are aimed at ensuring that there is a particular performance environment. Stabilizing economy requires critical input among different sectors so that better standards can be integrated and help improve the country economic growth.

The market environment has been significantly influenced by the need to effectively put in place a better operating environment and thus due to increased demand within the market, there has been significant development of new markets in different industries which have indeed created an improved climate where there better consideration of business development. The emerging markets with populations that are young and growing are increasingly becoming a major point of focus in business since there is adequate capital, talent, and innovation. Most of the established companies have been significantly engaged in focus on the emerging markets due to the ease in operating unlike the established markets, which create a challenging environment where an organization can maximize their revenues (Erkens, Hung & Matos, 2012).

Innovation in business in recent past has become a critical factor, which determines the competitive advantage among companies in different industries. The continuous changes in innovation are significantly increasing the overall business organizational environment where business has focused on to ensure that they remain significantly relevant in the industry.

This is very general - must be made specific to Iceland or removed. For example, discuss Iceland's specific macroeconomic policies that created a better focus on the country development. Name the challenges that Iceland witnessed that created a higher level of concentration where the government has sought to integrate different measures (what measures specifically was Iceland's government integrating) that are aimed at ensuring that there is a particular performance environment (what was the target performance environment). Same detail is needed for the two paragraphs that follow. Without detail and reasoning specific to Iceland, it really is just fluff. Another section that is vague follows:

The international hedge funds created a tight focus on the country's financial system where they brought claims for cents on the dollar and thus owning a significant part of the country's economic policy. Hedging and speculating within a business environment describe critical processes that provide a productive situation where it is possible to develop possible influence in markets. Hedgers and speculators are terms that explain traders and investors. Speculation is a process that involves trying to make a profit from the price changes in security. Hedging attempts to reduce the risks that are arises based on the security’s price changes (Lane & Milesi-Ferretti, 2017).

Balancing gains and losses is a critical aspect that hedging considers in limiting the amount of risk associated with security price change. The high volatile situation within the security price change creates a very difficult environment where it would be possible to speculate due to increased risks. Therefore, speculation involves chances taken by investors in predicting the direction in which the asset is moving.

For example, after reading the first sentence, the reader must understand how this caused the hedge funds to own the country's (Iceland's) economic policy. What effect did this have on the crisis and/or recovery? (And btw, was this part of the crisis or did this occur after the crisis - during recovery? I can't see where anything else in that paragraph brings value. How is the next paragraph relevant?

BELOW IS INFORMATION THAT MUST BE INCLUDED:

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· For the introduction, include what stabilization policy was adopted (expansionary/contractionary Fiscal/Monetary…)? Quantify what was the fiscal/monetary policy done? Introduce specific capital controls that helped stabilize the market. Explain why the capital controls were meant to be short-term but did not get lifted until recently. How did the capital controls affect the investments?

· During the recovery steps, did Iceland have expansionary or contractionary fiscal policy? Did they have expansionary or contractionary monetary policy? Discuss in as much detail as possible the policies during this time. What was the effect of these policies? What did they do?

· Government Spending and Taxes are important to discuss. Looking at data, quantify whether these factors increased or not. (For Government spending, it is best to use % of GDP that was spent. What year did it go up? How many years or for how long did it go up? Did tax revenues fall? Was a tax break given – lowered taxes? Etc) How did this affect consumer consumption? What else did it effect? Looking at changes in fiscal (government spending and taxes) and monetary policy, how was the ISLM model affected?

· Iceland did not save the banks but did bail out their people – explain this process and what effect it had.

· Why did Iceland’s recovery steps work? Show through a model.

· Discuss in detail the capital controls? What specific capital controls were implemented? What was the purpose and result of each? Why/How did they work?

· For macroeconomic assessment, how fast did they recover? Did some factors (GDP, unemployment, etc) recover fast while other factors (GDP, unemployment, etc) recovered slower? Explain why this may have been the case. Do you agree with the macroeconomic policies that were put into place? Apply theoretical lessons to something in a current event.

The focus should be macroeconomic policies put in place and how/why they were key to Iceland’s recovery.

Also, the introduction must be at least one page. The conclusion must be 1 page. It is important that these two sections contain the most critical information.