Jón Steinsson, an economist at New York’s Columbia University, has warned that the primary risk to the Icelandic economy is a a government with an irresponsible fiscal policy, RÚV reports.
It is not possible to spend tens or hundreds of billions of króna repealing household debt, reducing taxes, and building the welfare system, he noted.
“Something has to give, unless the government is going to go back on the path of irresponsible economic policies. I think the main risk that the country will confront is that the next government will not adopt sound fiscal policy,” Jón said.
To see where each of the political parties stand on debt, taxation, welfare, and many other things, be sure to check out the Grapevine Election Guide, in the current issue. [PDF link]
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