Research On Iceland Government Economic Function During Financial Crisis

This paper is based on defining the government economic function, as well as doing research on the main content, the means of implementation and impact factors, in order to make it clear on the relative economic function. By looking through the Iceland government economic function before the crisis, we can understand that how important economic function take part in a nation's developing. In another word, the whole development of Iceland economy relies on the government economic function expressing. Besides, we can understand that the huge affect of the financial crisis had brought the unpredictable destruction. Meanwhile, this phenomenon resulted from the lack of administration on the marketing. Therefore, we should focus on the areas about how Iceland government fulfill its economic function to deal with the financial crisis during this specific time.This paper did some research on a series of thorny issues during the Iceland government facing the financial crisis. Based on these issues, Iceland government came out some policies after the financial crisis, such as stabilize monetary, decline inflation, reduce financial deficits, etc. Although Iceland government did some effort, the limitation of national power and weakness of administration became the obstacles during the governance. Iceland should do more effort in order to run through this crisis. There are some lessons could be learned to improve our government economic function.Our government should recognize the following factors play important roles during the development of economy. First, the basic driven factors of macro-economy, including the stabilization macro-economy, excellent policy environment, perfect laws mechanisms, basic medical treatment and education. Second, the driven factors of macro-economy, which including the higher education, market on scale, effective labor market, perfect financial systems and developed high-tech industry. Third, the core driven factors of macro-economy, which means the national innovation. Applying these factors reasonability and fulfilling the government economic function can impulse the society developing well and harmoniously.