Ásgeir Jónsson: Macroeconomic stabilisation in small open economies – challenges and lessons: the Icelandic experience

Opening remarks by Mr Asgeir Jonsson, Governor of the Central Bank of Iceland, at the Reykjavik Economic Conference, Reykjavik, 23 May 2024.

The views expressed in this speech are those of the speaker and not the view of the BIS.

I am very pleased to welcome you to Iceland and to the first Reykjavik Economic Conference. Our ambition is to hold a conference of this kind annually. I would like to thank our colleagues at Northwestern University for very rewarding and pleasant cooperation in preparing the conference and in lining up an impressive list of speakers. I would especially like to thank Sergio Rebelo and Martin Eichenbaum who are not only here as participants, but also as hosts and organizers. We have ahead of us a two-day comprehensive program of presentations and discussions. We have among us academics, policymakers and practitioners which should ensure a fruitful dialogue and debate.

Distinguished academics will present and discuss papers on various topics of relevance, there will be keynote presentations on key matters pertaining to central bank policies, and four panel discussions filled with respected panelists, Governors, other central bankers and academics. The topics for our sessions over the next two days, the promise of macro-prudential policies, currency market intervention, fiscal sustainability and the current account and stabilization in small open economies - whether they have independent monetary policy or not - are all relevant to the challenges which we as central bankers face, each in our own country.

Our main focus is on small open economies or stabilization in small open economies. Being small does not necessarily make life simpler, even quite the contrary. Participating in the conference are several governors from small open economies in various parts of the world. They have very different currency arrangements, but nevertheless we all have in essence the same challenges to deal with. I look forward to the discussions.