Solved: What is worrisome about iceland balance of payments, Microeconomics

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What is worrisome about iceland balance of payments

Assignment:

1. If you were a Moody's analyst in May 2008, would you recommend that Moody's downgrade Iceland's sovereign debt? Why or why not?

2. What is most worrisome about Iceland's balance of payments?

3. Should Iceland seek membership in the EU? Iceland already belongs to the EFTA and the Nordic Passport Countries? What are these organizations and what does membership mean to Iceland?

Readings:

Iceland

By Aldo Musacchio

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