01788cas a2200241 a 4500 AALejournalIMF015093 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498365437 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Iceland : Selected Issues Paper. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (63 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper examines implications of capital account liberalization in Iceland. Capital controls were critical in 2008 to avoid a more severe collapse of the Icelandic economy. Six years later, capital inflows have been liberalized, but most outflows remain restricted. Iceland has used the breathing room to reduce flow and stock vulnerabilities, strengthen institutions, and prepare for the lifting of capital controls. Simulations using the central bank's Quarterly Macroeconomic Model (QMM) suggest that, compared with the 2008 crisis episode, the economy can better withstand the impact of an abrupt removal of capital controls. However, the outcome would be dependent on a number of factors, including resident depositor behavior. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2015/073 Full text available on IMF http://elibrary.imf.org/view/journals/002/2015/073/002.2015.issue-073-en.xml IMF e-Library