production possibility frontier production possibility frontier aka production possibility curve graphical representation possible combination goods constant resources technology representing production economy given fixed resources graphical representation mix economy achieve fully existing resources efficient way applications shows combinations amounts economy produce unit time number guns kilograms butter fixed factors production given production technologies available level depict trade offs like production fixed capital versus production consumer goods production set fixed input quantities curve shows maximum possible production level given production level given existing state technology defines productive efficiency context production set point frontier indicates efficient use available point beneath curve indicates compared goods services combination represented point efficient economy operates shows priorities choices economy choice producing capital goods fewer consumer goods vice versa normally drawn upwards origin concave represented downward linear straight depending number factors illustrates number economic concepts resources fundamental economic problem societies face opportunity cost marginal rate transformation productive efficiency efficiency economies scale outward shift results growth availability physical capital labour technological progress knowledge transform shift reflects economic growth economy operating productivity means produced specified period time sacrificing output good conversely shift inward labor force supply raw materials depleted natural disaster decreases stock physical capital economic reflect produced economy started operating frontier typically labor physical capital efficiency production possibility frontier typically takes form curve illustrated right economy operating said efficient meaning impossible produce good decreasing production good contrast economy operating curve said operating resources order produce goods resources labor capital sitting idle fully employed produce goods example assumes economy available quantities factors production change time technological progress occur economy operating production guns need sacrificed produce butter production efficient economy choose combinations points guns interest butter needed equal mix butter guns required points curve points maximum productive efficiency output good achieved given sacrificing output good points inside frontier produced inefficient points outside curve produced given existing resources points curve efficient case marginal rate transformation equal consumers marginal rate equal ratio prices impossible find trade consumer worse point lies production possibilities curve left said point produced currently available resources points lie right production possibilities curve said produced currently available resources points lie strictly left curve said inefficient existing resources allow production good sacrificing production good efficient point lies production possibilities curve point good produced producing good world theoretical difficulty graphical analysis multiple goods interested good composite score goods generated different techniques furthermore production model higher dimensional techniques principal component analysis opportunity cost starting point frontier increase productive resources increasing production good decreasing production second resources transferred away second points curve describe goods sacrifice production second good called opportunity cost increasing production good losing opportunity produce second opportunity cost measured number units second good units good context opportunity cost directly related shape curve shape curve straight line opportunity cost constant production different goods changing opportunity cost usually vary depending start end points right producing butter low level butter production costs loss guns shown movement point economy close maximum potential butter output produce butter guns sacrificed movement ratio gains losses determined marginal rate transformation marginal rate transformation slope production possibility frontier given point called marginal rate transformation slope defines rate production good productive resources production called marginal opportunity cost opportunity cost terms margin measures good given unit good vice versa shape commonly drawn concave origin represent increasing opportunity cost increased output good increases absolute size moves left right marginal rate transformation expressed terms marginal opportunity costs guns terms butter simply marginal opportunity cost butter terms guns example absolute slope point equal produce butter production guns sacrificed marginal opportunity cost butter terms guns equal sacrifice gun produce butter opportunity cost guns terms butter shape production possibility frontier constructed contract curve production box factor intensity example demonstrates increasing opportunity costs curve concave origin common form represents factor technologies production sectors economy product moving point point opportunity cost producing product increases resources efficient producing increasing production butter workers gun industry qualified general gun workers transferred making butter moving workers little impact opportunity cost increasing butter production loss gun production small cost producing successive units butter increase resources specialized gun production moved butter industry opportunity costs constant straight line linear produced case reflects situation resources specialised substituted added cost products requiring similar resources bread instance straight constant opportunity costs specifically constant returns scale opportunities linear factor production consider factor intensity sectors constant points production possibilities curve varying returns scale entirely linear case economies scale curve inward opportunity cost good falling produced producing successive units good determines opportunity cost mass production methods labor position main position given time state technology management expertise reflected available production functions available quantities factors production materials direct labor factory overhead points actually possible achieve short run long run technology improves supply factors production increases economy capacity produce goods increases potential realized economic growth occurs increase shown shift production possibility frontier right conversely natural military ecological disaster left response reduction economy productive capability points curve production set combinations goods economy potentially produce production goods depicted capital investment increase future production possibilities current consumption goods higher investment year shift following years shifts curve represent technological progress favors production possibilities good guns shifts favored good axis production possibilities direction similarly good makes use capital capital grows faster factors growth possibilities biased favor capital intensive good applications shows options open individual household firm good world definition point curve efficient given nature market demand points profitable firm combination profitable perspective illustrates production possibilities available nation economy given period time broad categories output traditionally movement committing funds consumption axis versus investment axis economy achieve productive efficiency necessarily efficient market failure imperfect competition institutions social decision making government tradition lead wrong combination goods produced wrong mix resources allocated producing goods compared consumers prefer given feasible


economy iran economy iran mixed transition economy large public sector percent economy centrally planned dominated oil gas production industries directly involved stock exchange best performing exchanges world past decade percent world proven oil reserves percent gas reserves iran considered energy world eighteenth largest purchasing power nominal gross domestic product country member high development potential unique feature iran economy presence large religious foundations called combined budgets represent percent central government spending price controls subsidies particularly food energy burden economy administrative controls widespread corruption restrictive factors undermine private sector led growth legislature late passed reform plan extensive economic reform government implemented gasoline country exports oil gas accounting majority government revenue oil export revenues enabled iran billion foreign exchange reserves iran ranked scientific growth world fastest development globally relative isolation global financial markets iran initially able avoid recession aftermath global financial crisis following increasingly stringent sanctions imposed international community result country nuclear program oil exports fell half allowing iraqi oil exports overtake iran time 1980s september iranian fell record low dollar exports aided self domestic investment double digit unemployment inflation remain problematic iran educated population high human development constrained economy insufficient foreign domestic investment prompted increasing number seek overseas employment resulting significant brain drain history defeated captured adopted gold main metal coins accounts biblical book dispatches sent provinces far india kingdom reign great time royal road persian empire ran city east port modern turkey sea modern agriculture iran dates 1820s undertook number changes traditional agricultural system changes included modified seeds signing collaboration contracts countries bank bought government russia later passed hands iranian government contract bank continued activities bank iran incorporating newly founded bank imperial bank persia established offices major cities persia improved country overall infrastructure implemented educational reform campaigned foreign influence reformed legal system introduced modern industries time iran experienced period social change economic development relative political stability succeeded son fundamental change occurred economy iran world war years immediately following rapid increase oil revenues sustained foreign aid led greater investment fast paced economic growth primarily government sector subsequently inflation increased value national currency foreign trade deficit developed economic policies implemented combat problems led declines rates nominal economic growth capita income prior iran developed rapidly traditionally agricultural 1970s country undergone significant modernization pace slowed capital flight reached billion dollars revolution following outbreak iran iraq war economy came government control year war iraq claimed iranian lives injured cost war country economy billion hostilities ceased government tried develop country communication transportation manufacturing health care education energy sectors including prospective nuclear power facilities began integrating communication transportation systems neighboring states government long term objectives revolution stated economic independence employment comfortable standard living end 20th century economy faced obstacles iran population doubled median age declined farmers agricultural production consistently fallen 1960s late 1990s iran imported food time economic countryside resulted people moving cities trends thirds population million people age net primary school enrollment suggesting secondary demographic boom iran national science budget million roughly equivalent figure early iran allocated research development ranking country world average ratio research government medium term target iran ranked scientific growth world 17th science production iran broad industrial base according economist iran ranked 39th list nations producing billion industrial products iran moved 28th place annual industrial production growth relative isolation international financial crisis early 21st century service sector country largest followed industry mining manufacturing agriculture estimated billion billion capita nominal projected double years real growth expected average year insufficient reduce unemployment rate furthermore international sanctions damaged economy reducing oil exports half iranian lost half value directing iran import economy according international monetary fund iran transition economy changing planned market economy united_nations iran economy semi developed iran ranked world economic forum analysis global countries political policy currency stability regarded problematic factor business iran difficulty financing major concern specially small medium enterprises according iran potential world largest economies 21st century national economic planning following annual approval government budget central bank presents detailed monetary credit policy money credit council approval major elements policies incorporated year economic development plan fifth development plan designed delegate power people develop knowledge economy plan vision strategy long term sustainable growth economic reform plan expansion public healthcare international relations main objectives fifth plan ambitious series measures include reform banking currency taxation customs construction employment nationwide goods services distribution social justice productivity intent country self sufficient replace payment billion subsidies annually targeted social assistance reforms target country major sources price distortion likely lead major restructuring economic sectors removing energy subsidies iran intends industries efficient competitive iran economic growth expected originate productivity improvement energy subsidies left country world energy efficient energy intensity times global average times higher middle eastern average banking sector seen potential removal subsidies plan expected directly impact banks iranian president stated country potential largest economies years fiscal monetary policy revolution government spending averaged social policies economic matters national defense general affairs payments averaged education health social security social programs agriculture water power gas manufacturing mining roads transportation economic affairs iran investment reached inflation fluctuated government revenue came oil natural gas revenue taxes fees virtually millions people pay taxes iran operate outside formal economy budget year billion budget based oil price barrel value dollar estimated period according head department statistics iran rules observed government save expenses central bank interest rate inflation rate climbed higher little alignment fiscal monetary policy according central bank iran gap rich poor narrowed monthly subsidies trend reverse high inflation iran estimated billion foreign reserves external payments oil approximately barrel billion reserves accessible current sanctions iranian media questioned reason iran government non foreign reserves latest round sanctions failure convert gold consequence iranian lost value december april iran external fiscal accounts reflect falling oil prices remain surplus current account expected reach surplus net fiscal balance payments iran national development fund register surplus external debts stood billion billion iran predicted grow ownership following hostilities iraq government declared intention industries economy sale state owned companies proceeded slowly mainly opposition nationalist majority parliament industries economy remained state owned majority heavy industries including steel copper automobiles machine tools remained public sector light industry privately owned article iranian constitution declares country economy consist state cooperative private sectors based state sector includes large scale industries foreign trade major minerals banking insurance power generation dams large scale irrigation networks radio television post telegraph telephone services aviation shipping roads railroads like publicly owned administered state cooperative companies enterprises concerned production distribution urban rural areas form basis cooperative sector operated accordance law consumer employed consumer million members private sector operate construction agriculture animal industry trade services supplement economic activities state cooperative sectors article strictly enforced private sector played larger role outlined constitution recent years role sector increased constitutional amendment allows state assets percent sales conducted justice shares scheme rest stock exchange government retain remaining government assets estimated billion billion assets reducing government direct share companies iran remain years making attractive potential investors according president iran wealth controlled people islamic revolutionary guard corps islamic revolutionary guard corps thought control iran economy estimates los_angeles_times suggest ties companies annual revenue excess billion particularly construction ministry petroleum awarded dollars bid contracts major infrastructure projects tasked border control maintains monopoly smuggling costing iranian companies dollars year smuggling encouraged generous domestic goods including fuel runs laser eye surgery makes cars builds bridges roads develops oil gas fields religious foundations welfare programs managed public agencies alongside semi state organizations known private non governmental organizations consortium tax exempt organizations receive subsidies religious donations answer directly supreme leader iran control operating vast cotton farms hotels soft drink auto manufacturing shipping lines seen corrupt generally companies compete iran unprotected private sector firms complain difficulty competing subject iran accounting laws multi sector business organization holdings companies estimated value billion control supreme leader ali created thousands properties confiscated labor force revolution government established national education system improved adult literacy rates adult population ahead regional average human development index placing iran high human development annual economic growth necessary absorb new labor force year agriculture contributes employs labor force industrial sector includes mining manufacturing construction contributed employed labor force mineral products notably petroleum account iran export revenues mining employs labor force service sector ranked largest contributor employed workers women labor force youth unemployment aged resulting significant brain drain personal income poverty iran classed middle income country significant progress provision health education services period covered millennium development goals iran average monthly income capita minimum national wage applies sector activity defined supreme labor council month year world bank reported approximately household consumption spent food fuel health care education little debt seventy percent homes revolution composition middle class iran change significantly size doubled population official poverty line year ending march national average poverty line iran department statistics announced million live absolute poverty line million live relative poverty line social security iran offer universal social protection iranian center statistics estimated iranian population covered social security membership social security system employees compulsory social security ensures employee protection unemployment disease old age accidents government began consolidate welfare organizations eliminate minimum standard pension worker earnings minimum wage iran spent national budget social welfare programs covered pension costs homeless iran women employees age years covered social security system financing shared employee salary employer state turn employer contribution social security applies self employed workers voluntarily contribute income depending protection sought civil servants regular military law enforcement agencies pension systems trade unions iranian workers theoretical right form labor unions union system country worker representation provided workers house state sponsored institution attempts challenge state policies guild unions operate locally areas limited largely issuing credentials licenses right strike generally respected state strikes met police action comprehensive law covers labor relations including hiring foreign workers provides broad inclusive definition individuals covers recognizing written oral temporary indefinite employment contracts considered employee friendly labor law makes difficult lay staff employing personnel consecutive month contracts avoid paying benefits illegal dismissing staff proof offense labor disputes settled special labor council usually rules favor employee sectors economy agriculture agriculture contributes gross national product employs labor force iran land main food producing areas located region northwestern valleys northern western areas support rain fed agriculture require irrigation primitive farming methods soil poor seed water principal obstacles increased production total cultivated land construction dams rivers mountains increased water available irrigation agricultural production increasing result modernization improvements crops livestock land programs wheat important crop grown mainly west northwest rice major crop region crops include corn cotton sugar tea tobacco fruits potatoes beans vegetables fodder plants including iran world largest producer honey second largest date producer meat dairy products include lamb goat meat beef milk eggs butter cheese non food products include wool leather silk forestry products northern slopes mountains economically important tree cutting strictly controlled government runs program rivers drain sea salmon trout pike produce iran largest producer revolution commercial farming replaced farming dominant mode agricultural production gross value reached billion iran self sufficient essential agricultural products limited rice production leads substantial imports iran reached self wheat production time net wheat quarter iran non oil exports agricultural products including fresh dried fruits nuts animal hides processed foods iran exported million worth billion tonnes total entities engaged iranian food industry entities industry sector sector employs approximately people entire industry sector workforce manufacturing large scale factory manufacturing began 1920s iran iraq war iraq bombed iran plants damaging large oil bringing production halt reconstruction began production resumed spite war small factories sprang produce import goods materials needed military iran major manufactured products steel copper products important include automobiles home electric telecommunications equipment cement industrial machinery iran operates largest operational population industrial robots west asia products include paper rubber products processed foods leather products textile mills domestic cotton wool iran employed people coast report united_nations industrial development organization small medium sized enterprises identified following industrial development lack monitoring institutions inefficient banking system insufficient research development shortage managerial skills corruption inefficient taxation socio cultural absence social learning loops shortcomings international market awareness necessary global competition bureaucratic procedures shortage skilled labor lack intellectual property protection inadequate social capital social responsibility socio cultural values despite problems iran progressed scientific technological fields including defense heavy industry face economic sanctions iran emerging country iran long tradition producing goods including persian glass leather goods wooden artifacts country carpet weaving tradition dates pre islamic times remains important industry contributing substantial amounts rural estimated million iran produce domestic international export markets million worth hand woven exported year accounting world market million people work fields contribute automobile manufacturing public privately owned iran led iran accounted domestic production iran replaced predominant brand market largest player whilst contributed year car manufacturers group motors accounted remaining produce wide range vehicles including passenger cars mini trucks medium sized trucks heavy trucks large buses heavy automobiles commercial private activities country iran ranked fifth car production growth china taiwan romania india iran world 12th biggest operates fleet million cars iran produced cars including commercial vehicles defense industry international institute strategic studies estimated iran defense budget billion equivalent capita ranking 25th internationally country defense industry types arms equipment iran defense industries organization produced tanks armored personnel carriers guided missiles radar systems guided missile destroyer military vessels submarines fighter plane iran exported weapons countries including nato members exports reached million developing sophisticated mobile air defense system dubbed construction real estate early 1950s construction remained hands small domestic companies increased income oil gas easy credit triggered building boom attracted international construction firms country growth continued mid-1970s sharp rise inflation credit squeeze collapsed boom construction industry revived somewhat mid-1980s housing shortages speculation remained problems especially large urban centers january banking sector particularly bank loaned billion applicants housing scheme construction important sectors accounting total private investment urban areas prime investment targets annual turnover amounted billion billion poor construction quality buildings need seismic reinforcement renovation iran large dam building industry mines metals mineral production contributed country figure increases mining related industries included factors include poor infrastructure legal barriers exploration difficulties government control resources iran ranked world major mineral rich countries petroleum industry provides majority revenue mining sector employees work mines producing minerals oil natural gas include coal iron ore copper lead salt gold mainly product copper complex operation province home world second largest store copper large iron ore deposits exist central iran near government owns mines related industries seeking foreign investment sector accounts exports iran coal reserves nearly billion short tonnes country produced million short tonnes coal annually consumed million short tonnes making net country plans increase hard coal production million tons million tons november main steel mills located iran self sufficient steel aluminum copper production projected hit tons respectively march cement production reached million tons countries iran equipment domestically including oil drilling offshore platforms exploration instruments thanks plant world largest unit completion special economic zone projects iran exports reached billion billion billion months iranian calendar year national company output capacity increase million estimated million world second largest chemical producer globally chemical iran housing world largest chemical complexes major located site failed meet domestic demand gasoline iran industry requires billion investment period self sufficient end gasoline imports iran fifth gasoline prices world leading fuel smuggling neighboring countries services despite 1990s efforts economic government spending including expenditure quasi governmental foundations remains high estimates service sector spending iran regularly government related including military expenditures government salaries social security contributed service sector growth important service industries include public services including education commerce personal services professional services tourism total value transport communications expected rise billion nominal terms representing iran projections based employment figures compiled international labour organization suggest iran transport communications sector employed million people labor force energy gas petroleum iran possesses world proven oil reserves gas reserves domestic oil gas hydroelectric power facilities provide power energy iran amounts seven billion dollars year higher international norm iran oil gas countries iran paid billion subsidies oil gas electricity world largest consumer natural gas united_states russia iran completed nuclear power plant russian assistance iran major oil country major oil fields lie central southwestern parts western mountains oil found northern iran persian gulf iran fourth largest oil producer second largest oil producer second largest following revolution new government reduced production decline production occurred result damage oil facilities iraq iran war oil production rose late 1980s repaired new gulf fields exploited annual oil production reached billion barrels producing net profit billion iranian central bank data declining trend share iranian exports oil products quarters iranian officials estimate iran annual oil gas revenues reach billion current projects come stream oil fields ports island iran state owned oil gas industry entered major exploration production agreements foreign iranian oil inaugurated island trades petroleum gas trading primarily euro major including dollar according petroleum ministry iran plans invest billion oil sector retail distribution iran retail industry consists largely government sponsored independent retailers operating bulk food sales occur street markets prices set chief statistics bureau iran small grocery retailers especially popular cities number limited mini markets emerging independent operations biggest state owned market electronic commerce iran passed billion mark spent billion food billion clothes billion outward tourism overall consumer expenditures income projected billion billion respectively healthcare constitution basic health care covered voluntary national health insurance system population use insurance system cover drug expenses government heavily production total market value iran health medical sector billion forecast rise billion companies iran produced market worth billion figure projected increase billion tourism travel tourism declined significantly war iraq subsequently recovered foreign tourists visited iran million asian countries including central asia came european_union north_america popular tourist destinations early 2000s industry faced limitations infrastructure communications industry standards personnel training majority tourist granted obtained asian muslims presumably intended visit important pilgrimage sites organized tours germany france european countries come iran annually visit archaeological sites monuments iran ranked tourism revenues worldwide according deputy head research iran travel tourism organization iran rated countries world domestic tourism iran largest world banking finance insurance government loans credits available industrial agricultural projects primarily banks iran unit currency average official exchange rate dollar exchanged unofficial market higher rate government private banks banking system replaced interest loans handling fees accordance islamic law system took effect mid-1980s banking system consists central bank bank issues currency oversees state private banks commercial banks branches country development banks exist housing bank home government began banking sector licenses issued new privately owned banks state owned commercial banks predominantly loans state enterprises large scale private firms thousand wealthy connected individuals difficulty obtaining small home loans individuals secured facilities totaling billion iran general inspection office announced iranian banks held billion loans capital billion foreign transactions iran amounted billion major contracts including private government lines credit iran billion assets abroad iran attracted billion abroad billion billion international commercial bank loans million consisted loans projects international development banks stock exchange traded shares registered companies listed companies valued billion insurance accounted figure partly low average income head state owned insurance firms dominate market active commercial insurance leading player iran insurance company followed asia party liability insurance accounted followed health insurance fire insurance life insurance communications electronics broadcast media including national radio stations national television networks dozens local radio television stations run government telephone lines personal computers residents personal computers home use affordable mid-1990s demand internet access increased rapidly iran world largest number ministry post telegraph telephone later renamed ministry information communication technology began selling internet accounts general public revenues iranian industry estimated billion iran internet service providers private sector operated iran largest mobile market middle_east million mobile million smart phones according world bank iran information communications technology sector share people work sector including software industry companies registered software development software exports stood million end iran market fourth largest middle_east billion expected reach billion compound annual growth rate transport iran extensive paved road system linking towns cities country kilometres roads paved approximately passenger cars inhabitants trains operated kilometres track country major port entry arriving iran imported goods distributed trucks freight trains railroad opened connects central asia major ports include sea persian gulf dozens cities passenger cargo airports iran air national airline founded operates domestic international flights large cities bus transit systems private companies provide bus services constructing underground railways million people work transportation sector accounting international trade iran founding member organization gas countries petroleum constitutes iran exports value billion time value iran non oil exports expected reach value imports billion alcohol hand woven automobiles major non oil exports copper cement leather fruits export items iran technical engineering service exports billion technical services went central asia million iraq close million africa iranian firms developed energy irrigation dams power generation different countries country non oil exports priority expanding broad industrial base educated motivated workforce favorable location gives proximity estimated market million people persian gulf countries east total import volume rose billion billion billion iran major commercial partners china india germany south_korea japan france russia italy united_states iran foremost economic military partner playing major role infrastructure industry modernization reported machinery equipment iran german origin mid-1990s iran increased economic cooperation developing countries south south integration including syria india china south_africa cuba venezuela iran trade india passed billion increase year iran expanding trade ties turkey pakistan shares partners common objective create common market west central asia iran increased investment neighboring countries iraq afghanistan estimated iranian handle domestic economy account equal proportion population iranian workers abroad billion home trade iran billion money invested local real estate market import export businesses collectively known geared providing iran countries required consumer goods estimated iran imported goods exports delivered black market underground economy illegal foreign direct investment 1990s early 2000s indirect development agreements foreign firms including contracts oil sector contractor provided project finance return allocated production share operation transferred national iranian oil company set number years completing contract unfavorable complex operating requirements international sanctions hindered foreign investment country despite relevant regulations early 2000s iran absorbed billion foreign investment iranian calendar years estimates iran net rise foreign investors concentrated activities energy vehicle manufacture copper mining construction utilities clothing food sectors iran member world bank investment guarantee agency combined net worth iranian citizens abroad dollars according head organization investment economic technical assistance iran iran ranked countries working conditions iran stands number terms business start ups obtaining permits employment asset registration obtaining credit legal support investments tax payments overseas trade contract feasibility bankruptcy firms countries invested iran asia europe largest participants shown economic impact partial lifting sanctions extends energy sector new_york_times reported consumer oriented companies particular find opportunity country million consumers young prefer western products iran considered strong emerging market play investment trading firms opening iran market place foreign investment competitive multinational firms operating variety manufacturing service sectors worth billion billion new investment opportunities decade iran world trade organization iran held observer status world trade organization united_states consistently blocked bid join organization observer status came goodwill gesture ease nuclear negotiations iran international community iran eventually gain membership status enforced country require major overhaul country hoping attract dollars worth foreign investment creating favorable investment climate trade free trade zones island expected assist process iran allocated billion loans launch trade centers countries international sanctions iranian revolution united_states ended economic diplomatic ties iran banned iranian oil imports approximately billion assets government passed iran libya sanctions act prohibits non companies investing trading iran amounts million annually exceptions restriction items including medical equipment iran nuclear program subject contention west suspicions intentions security council imposed sanctions select companies linked nuclear program country economic isolation sanctions notably bar nuclear missile military exports iran target investments oil gas exports refined petroleum products iranian revolutionary guard corps banks insurance financial transactions shipping european_union sanctions joining decade old oil iran iran world powers reached deal iran nuclear program remove main sanctions iran early effects according state william burns iran losing billion annually energy investment sanctions making imports costly average addition latest round sanctions cost iran annually billion lost oil revenues iran increasingly trade access international dollar payment system denied according iranian officials large scale withdrawal international companies represents opportunity domestic companies replace estimated iranian exports fell record september million end fall led drop revenues clashes streets local currency collapsed september output iran lowest energy department warned imposing oil iran increase world oil prices widening gap supply demand according iran reduce world price crude petroleum saving united_states annually billion world oil price according sanctions cost united_states billion lost trade lost job opportunities sanctions cost states twice united_states terms lost trade revenue germany hit hardest losing billion italy france following billion billion respectively positive growth sanctions reduced growth unofficial unemployment rate oil exports dropped million million iran billion foreign exchange reserves frozen overseas automobile production declined according government iran economy reached point fundamentally incapable recovery nuclear accommodation west


food power international politics food power use agriculture means political control nation group nations offers nation group nations order manipulate behavior potential use weapon recognised earlier use oil political weapon food major influence political actions nation response acts food power nation usually acts interest citizens provide food food power integral politics food idea food power employment food politics order nation utilize food power effectively nation effectively apply display supply concentration demand action independence main nations export agriculture able exert food power united_states canada australia new_zealand smaller scale particularly african countries food power weapon opposing sides internal wars conflicts people historical background nations world export agriculture exert hypothetical food power united_states canada australia new_zealand forced rely nations times shortage food countries face food crises needed supplies withheld political leaders food countries expressed dependence food nations generally food agricultural producers nations press governments continue export policy food politics political aspects production control regulation inspection distribution food politics affected ethical cultural medical environmental disputes concerning proper farming agricultural methods regulations food power integral politics food food weapon stated earl united_states secretary agriculture use oil political weapon brought possibility america use food tool states goals alternative uses food power refuse continue import political concessions effects refusing export example american reduction cuban sugar simple terms demand concentration dominant buyer supply competing sell product try use exchange politically favor especially effective little export low action independence food power food security food security food power thing directly related food security people region times food active healthy life food power related government company leader country etc takes security away order return countries employ exploit food power threaten country food security country welfare directly welfare people country wants appropriate supply food citizens want easily leverage politics food demonstrating food power food power food power food power fact involve food list restricted items fail example august allied powers began important items normally shipped germany complete effective food added list restricted materials food real power food introduced blockade began germany economy dependent imports food allied powers power food germany forced resort desperate measures eventually failed despite early 1980s united_states posed grain soviet_union attempt utilize food power confirmed soviets imported grain different suppliers leading increase grain imports time period higher cost unsuccessful food power attempt imposed security council iraq example united_states cuba ongoing declining situation health cuba people subject protest employment structural conditions food power effectively certain structural conditions apply demand high supply limited value given increases price reflects potential goods weapon indicates importance attached example consumer prepared pay high price monetary terms willing pay high price political concessions supply concentration supply hands producers sellers makes possible limited competition price potentially monopoly demand allows sellers play consumers increase prices terms favors use economic goods food weapon action independence order ensure seller producer control assets seller producer able control production process governmental control companies carrying production access means dimensions ensure maintain extend control assets conditions listed simultaneously present order turn economic asset food political instrument necessarily mean asset conditions present decision considered conditions example nature given conflict judgment goals alternative means judgment utility employment economic weapon uses employing economic weapons country use economic weapons concern seller buyer conditions business contract include price transportation payment etc example successful application food power political objective use concerns economic objectives relating transaction goods general economic policy buyer balance payments general problems inflation taxation land holding distinguishes fact link conditions laid transfer product conditions refer economic realm life political use concerning buyer foreign defense policies believe moral threshold economy politics making use economic means political gains questionable examples use economic weapons political aims certain countries buying votes fourth purpose basic assumption category governments longer accept legitimate economic goals longer seen means influencing opposite government stimulate opposition achieve overthrow capitulation government united_states time united_states dominant areas like military energy exports etc food power thought powers diminished power food come surface realm food united_states remains united_states position largest producer food nations predominantly developing nations richest oil nations beginning food shortages dependent imported food united_states giving power allows united_states expect friendly behavior countries import american food likely united_states form influence countries countries dependent wheat possibility united_states restrict food exports political purposes united_states use food power means pressure countries food power effective times food shortage famine countries dependence united_states desperate frequently uses economic power order punish countries ways holding food reasons punishment country vary broken main groups foreign objective market development humanitarian objectives foreign objective tends punish countries threatening example threat countries forms government examples related objective aid communist countries socialist governments countries support radical regimes regimes inadequate democracy weak anti communist effectively countries accept agreements example market development humanitarian objectives fall category countries trying compete economically execute foreign aid countries trying property companies countries want functions companies countries trying initiate economic policies modified stance 1970s state department cia issued reports exploring potential food congressional bill trade sanctions reform export act removed agricultural export sanctions applied libya north_korea agricultural trade cuba remained restrictions gave congress veto power presidential actions regard africa food politics africa differs cases north_america europe case small scale food power africa particularly experts cases famine food africa inconsistent output food production downward spiral interaction population growth environmental closer inspection revealed nature catalyst africa numerous food issues famine shaped generally theories food availability decline result drought war drastic change agricultural system natural cause famine theory deals primarily population ability access entitled food case food power makes known small scale opposing political forces compete votes people encouraging famine example famine 1980s completely intentional varied collection different improve political economic political parties weren merchants known grain buy livestock low prices shifted terms trade western merchants famine described refused sell grain villages reasonable prices famine example food power food policy completely ignored needs people fostered political power hungry intentions opposite forces country famine humanitarian disaster caused mainly human rights abuses drought failure international community react famine risk adequate speed worst affected area southwestern region people died famine


american automobile industry 1950s 1950s pivotal american automobile industry post world war era brought wide range new technologies automobile consumer host problems independent automobile manufacturers industry era rapid technological change mass production benefits economies scale led innovative designs greater profits stiff competition end decade industry big age small independent consolidated went business number innovations invented improved sufficiently allow mass production decade air conditioning automatic transmission power steering power brakes seat belts arguably influential change automotive history overhead valve engine horsepower race begun laying foundation muscle car era automobile manufacturing largest industry segment largest created auto industry times larger automotive industries rest world combined sixth working americans employed directly indirectly industry imports eroded need large workforce couple decades 1950s pinnacle american automotive manufacturing helped shape united_states economic industry consolidation automobile companies begun operations detroit beginning 20th century 1920s decade gave rise big ford largest american automobile big refers general motors ford bought companies earlier 20th century accounted percent auto sales combined market share grew following decades declining slightly world war big soon came dominate industry claiming percent automobile sales industry grew pace seen broader industry soon employed sixth entire american workforce smaller american motors corporation formed hudson merged nash corporation deal worth usd million million dollars largest corporate merger history time smaller independent manufacturers followed moderately successful sufficiently large challenge big eventually bought enjoyed earlier success independent produce engine cubic inch unit low priced company peak year produced sold units struggled half decade cars ahead time compared offerings big low sales financial difficulties led merger financial trouble new company corporation retired july continued marketing automobiles industry sales table shows number sales reported significant american automotive brand 1950s numbers based estimates total count figures smaller independent total million cars produced sold 1950s american manufacturers compared total population united_states end decade new vehicle living persons ages production year production numbers conflicting depending calculated vehicles classified according ward number actual duty trucks manufactured north_america year including domestic production intended export represented innovations innovations introduced refined 1950s driving safer comfortable combined lower prices growth suburbs car ownership people driving longer distances new innovations fueled philosophy dynamic forcing buyers upgrade years future sales automatic transmission automatic developed general motors 1930s introduced transmission incorporated built tanks war marketed battle tested 1950s dominant american passenger cars influential automatic transmission low cost automobile speed automatic transmission production variations drag racing owing simplicity ford initially offered lincoln cars capable handling large vehicles soon began production inexpensive end decade half new cars sold america automatic power windows automatic power windows developed major american brands experimented technology initially luxury vehicles replacement manually operated roll windows 1950s widespread american passenger cars suspension design roads built average travel speeds increased inherent limitations pre war suspension systems obvious 1950s automobiles based suspension limited degree free movement ultimately ride particularly higher speeds transition ball joint type suspension allowed greater flexibility adjustment use variety methods support weight car leaf springs springs bars combination shock newer suspension designs cars safer highway speeds cost slightly based systems 1950s approached solid generally replaced wheel independent suspension ride considerably allowing safer highway speeds champion introduced independent suspension product line marketing new knee action suspension model year automobiles vast majority american vehicles continued use simple live rear 1980s americans access wheel independent suspension technology imported cars like beetle jaguar type introduced self air suspension option american manufacturer quick response suspension advances replaced springs air filled american version proved troublesome discontinued later year chevrolet ford mercury introduced air suspension option select models unreliable soon dropped unpopular air suspension contributed division decline fifth place industry sales decades later common reliable method suspension luxury cars buses large transport trucks custom car applications chassis design construction went mass production traction avant lincoln nash came popular use 1950s construction differs traditional chassis design framing single body number pieces single unit distributing load entire frame car claimed construction automobiles stronger rigid easy handle engine powerful engine mass production cars commonplace newer heavier cars built 1950s particular significance american use technology cars relatively modest price point chevrolet small block cubic inch engine released model year basis engines use general motors today original cubic inch engine barrel produced barrel version corvette produced amazing power time engine increased cubic inches including fuel injected version produced engine ratio horse power versus cubic inches ford engine line beginning decade introduced ford block engine similar larger lincoln block engine luxury car lines soon phased ford windsor engine forms basis current engine line lincoln block cubic inch motor rated slightly higher cubic inch invincible design replaced lincoln came cubic inch displacement versions like motor overhead valve design valve design shared engines began development overhead valve commander despite later rumors copied design available public available copy engine development engine features found design testing way early production units installed late model year commanders available low priced american engine officially available model year commanders commander land cruisers engine displaced cubic inches bore inches stroke inches produced rpm rpm stroke smaller bore engine excellent fuel economy longevity engine designed appeared 1950s including cubic inch versions noted production seven years ford windsor available displacement common reached 1960s record breaking series having maximum displacement cubic inches experimental having dual producing created firepower engine model year chambers featured produced impressive rpm firepower longer synonymous engines longer use engines larger heavier competing designs ford owing larger cylinder heads required producing engine triple average horsepower decade earlier developed overhead valve engine called original design years version produced seat belts nash offered optional seat belts models models following year ford followed suit swedish company introduced seat belts standard equipment shown new_york motor modern point seat belt restraint consumer vehicles today patented patent americans roger hugh developed modern form swedish inventor patent introduced point safety device standard equipment demonstrated effectiveness study accidents sweden occupants sustained fatal injuries speed range occupants fatally injured accident speeds mph fatally injured passenger compartment remained intact american manufacturers followed lead automobiles point seat belts standard equipment standard rear seat belts tires radial tires invented quickly standard equipment auto making subsidiary use spread auto population 1980s following consumer reports evaluation competing technologies noting technology superiority life safety handling fuel economy offered optional radial tires year standard lincoln continental mark air conditioning imperial production car years offer air conditioning following tentative experiments actually installing optional air conditioning units beat added option later year star chief offered modern design air conditioning common dealer option installed percent automobiles american roads steering began use precise rack steering systems 1930s european manufacturers soon adopted technology american adopted rack steering beginning ford steering power assistance power assisted steering type vehicle dates little recorded system attempts add power assisted steering vehicles columbia ton truck heavy vehicles practical hydraulic power system invented francis davis armored vehicles heavy trucks world war took decades system passenger automobiles introduced commercially available passenger car power steering system imperial marketed option available general motors followed suit year offering option years later manufacturer offer power assisted steering standard equipment brakes major car makers hydraulic brakes ford switch cable manipulated systems power assisted vacuum brakes invented generally available option 1950s self adjusting brakes initially offered mercury manufacturers soon followed suit offered power brakes standard equipment vehicles model year american vehicles drum brakes american production model offer wheel disc brakes prone fade current standard design entertainment mid decade radios automobiles vacuum tubes april announced development production radio automobile dubbed model jointly developed offered option imperial car models manufactured radio exclusively ohio plant years earlier company offer radio automobiles radio dominated years come beginning offered small called highway luxury cars played seven inch records proved unpopular soon discontinued concept cars auto design 1950s reflected atomic age jet age space age technologies pioneered prototypes reached production owing market forces concept cars ranged bizarre uncomfortable non functional created inspire public imagination simply promote image company product line ford concept car announced ford design lacked capacity house internal engine instead designed powered small nuclear power plant rear vehicle similar submarine mercury concept cars created ford introduced detroit auto featured forward rear ford time power seats brakes steering like similar cars time operational electrical components trunk hood innovations appeared later lincoln premiere earl helped develop general motors series concept cars shown auto shows 1950s iii research project study feasibility gas turbine engines featured radical aircraft like notable failures named henry ford son ford debut separate car division september model year said critics look like lemon ended marketing cost ford million million dollars turned word enduring metaphor failure car sold poorly production final model year ceased november ford tried revive continental brand standalone line ultra luxury automobiles abandoned attempt model year time mark cars built failure price tag extraordinary money time continental successful car model ford lincoln brand kaiser economy compact henry product lines ceased production end model year run partly owing failure produce market viable engine marketplace increasingly focused horsepower associated power plant particular henry named henry kaiser sold initially strong units power plant optional starting consumer buy sized chevrolet auto henry making economically lines compared offerings big example badge engineering henry sold exclusively company died slow death 1950s owing decreasing popularity recession moved mainstream price range came upper priced imperial line putting direct competition model year reduced single model november ended weeks introduction models seemingly sudden announcement resulted negative publicity advertising press releases given impression brand continued offered vehicles recent added expense changing signs expenses estimated cost ending million hudson produced automobiles years hudson cars popular nascar early 1950s particular hudson known prominence animated movie cars early popularity design low center gravity excellent handling failed rest industry mid decade hudson actually nash auto different trim offered little save brand discontinued years later began 1950s difficult note sales dropped higher end products offered advanced features automatic transmission standard equipment overall body designs considered dated years merger production ceased company unable advances sales big produced cars including compact cars era bigger powerful cars unique sold network stores peak production vehicles produced followed sharp drop demand resulting loss million year automobiles sold maximum fast miles hour achieved miles company sold general tire rubber company assets ended production automobiles car company produced cars chicago assisted frank earlier attempted produce sports car sport sold units company managed produce cars estimated company lost car leading collapse years business influential events number critical events changed manufacturing environment decade including wars cultural changes economic difficulties creating opportunity challenges automobile industry war world war ended september allowed conversion economy peacetime economy excess industrial capacity high demand new consumer goods returning soldiers cold war began world war served increase paranoia concern nuclear war soviet_union americans responded escaping lifestyle heavy benefited president dwight launched interstate highway system signing federal aid highway act law gained appreciation german network necessary component national defense system serving supreme commander allied forces europe world war korean war officially began june cease fire signed years later july official ending early 1950s meant government control raw materials steel strict seen world war impact obvious steel different manufacturers government control market forces national production authority final resources company given limited industry cars general motors given percent total company exceeded quarters forcing close production lines fourth limitations continued shut october cultural changes decade saw shift american culture interstate system baby boom 1950s centered post war baby boom average million annually decade total million new baby born dramatically increasing demand automobiles new families new interstate highway system facilitated migration suburbs automobile ownership considered luxury necessity cultural symbol independence larger families drove demand larger automobiles time families owned automobile new suburbs pennsylvania rapidly developed fueled promise new expanding families steel strike lasted days steel strike caused national production authority limit steel available broad effect strike run strike unemployment detroit jumped percent december auto employment dropped month later soup set detroit auto employment dropped strike ended june strike better wages steel workers auto workers blamed unions auto manufacturers accused speeding work period heavy resulted number strikes recession recession dramatic declines automotive industry early record year sales industry selling million automobiles extraordinary surge sales served reduce demand following years sales declined million million making worst year auto sales world war manufacturing declined percent end recession michigan experienced percent unemployment highest state time labor union activity 1950s mark peak union membership percentage total workforce labor membership peaking percent workforce mid decade united auto workers founded helped play major role automotive industry world war workers health coverage benefits didn exist automotive industry previously pension plans established supplemental unemployment benefits fund supplemented employees unemployment insurance periods series pivotal strikes took place decade including strike lasted days january centered demand pay pension retired workers benefits union paid striking workers benefits strike dangerously cash reserves end main issue strike disastrous consequences ended year percent gain sales previous year compared ford gains percent percent respectively costing estimated billion lost sales racial discrimination 1950s racial discrimination common america auto industry immune african americans typically offered lowest paying jobs outright denied employment employers openly advertised white applicants workplace discrimination universal widespread listing racial preferences job advertising illegal michigan law hiring practices varied according individual plant managers factories relatively integrated virtually black employees african americans percent auto manufacturing workforce increasing slightly percent blacks outnumbered whites city detroit unions fought end racial discrimination manufacturers free openly hiring passage civil rights act enduring models automobiles introduced 1950s impact extends decade continuously recognized created following spans multiple generations introduced considered beautiful american automobiles 1950s designed team led industrial designer called chevrolet corvette introduced model year production gone seven major generations minor changes yearly features body tradition original model rolled assembly line originally chevrolet expected use concept car shown use steel production cars come engine standard equipment year blue flame cylinder engine years production consumer reports named best available america ford introduced remained production production resumed continued model year different generations time spans unlike corvette marketed personal luxury car car changed dramatically size production periods having seat times produced series automobiles model year added letter model year lettering scheme continued time began producing non letter series automobiles model year years overlapping model names different vehicles non letter models produced model year began half model year years time produced model years finally model year introduced production

American automobile industry in the 1950s


financial crisis financial crisis major economic political event iceland involved default country major privately owned commercial banks late following difficulties short term debt run deposits netherlands united_kingdom relative size economy iceland banking collapse largest experienced country economic history crisis led severe economic depression significant political unrest years preceding crisis banks multiplied size expansion driven ready access credit international financial markets particular short term financing international financial crisis investors perceived banks increasingly risky trust banks gradually faded leading sharp increased difficulties banks rolling short term debt end second quarter iceland external debt billion times iceland assets banks totaled end second quarter equal times national huge size financial system comparison economy central bank iceland found unable act resort crisis banking system september announced subsequent efforts restore faith banking system failed october legislature instituted emergency law enabled financial authority control financial institutions domestic deposits banks priority claims following days new banks founded domestic operations old banks resulting losses shareholders foreign creditors outside iceland half million lost access accounts foreign branches banks led dispute ended ruling iceland obliged repay dutch british minimum deposit guarantees effort stabilize situation government stated domestic deposits banks guaranteed imposed strict capital controls stabilize value secured sovereign debt package countries order finance budget deficit restoration banking system international support programme led officially ended august capital controls imposed november place financial crisis negative impact economy national currency fell sharply value foreign currency transactions virtually suspended weeks market stock exchange fell result crisis iceland underwent severe economic depression country gross domestic product dropped real terms quarter quarter new era positive growth started helped foster gradually declining trend unemployment rate government budget deficit declined central government gross debt ratio expected decline maximum development currency declined euro january september inflation consumer prices running iceland interest rates raised deal high inflation night wednesday october central bank iceland abandoned attempt euro trying set october october trading euro trading currency collapsed takeover major bank loss trade clearing houses day central bank introduced restrictions purchase foreign currency iceland october november european central bank quoted reference rate euro central bank iceland set temporary system daily currency october facilitate international trade value determined supply demand auction sold million rate euro commercial trading outside iceland restarted october exchange rate euro interest rates raised foreign exchange reserves central bank iceland fell million october november real exchange rate inflation quoted central bank iceland roughly lower average rate lower historical lows period external rate quoted european central bank lower trading day month november central bank iceland quoting euro european central bank quoting euro november central bank iceland minister business affairs agreed new set currency regulations replacing central bank restrictions imposed early crisis movements capital iceland banned license central bank estimated foreign investors hold billion popularly known bonds foreign exchange rules residents deposit new foreign currency receive bank evidence operating informal offshore foreign exchange market trading pounds outside control onshore market foreign currency central bank sell million currency reserves november difference compared estimated trade surplus million currency auction held december domestic foreign exchange market reopened following day market makers government owned days domestic trading climbed euro currency auction rate january exchange rate euro stabilized compared situation october lowest rate january highest january meantime iceland month inflation january climbed record high banks september internal documents largest bank iceland leaked september plan announced bank government purchase stake million government stated intend hold ownership bank long period bank expected carry operating normal according government bank ceased exist weeks intervention later turned million debt mature october went placed initial plan government purchase stake approved shareholders announced came united_kingdom government forced sell retail operations branch network weekend october british newspapers carried articles detailing high leverage iceland banks influential bbc business editor robert published opinion piece banks stating debt insurance required premium guarantee return million worst case financial encountered time graphic description guardian said iceland brink collapse inflation interest rates raging upwards iceland currency articles investors discussing brand netherlands online forums started moving savings internet bank problems access site hinted run savings october number private credit facilities banks shut prime minister addressed nation announced package new regulatory measures iceland parliament immediately cooperation opposition parties included power running banks treatment event bank separate measure retail deposits branches banks guaranteed emergency measures deemed unnecessary government hours earlier evening subsidiary went voluntary administration approval financial services commission administrators later main reason bank difficulties placing funds fellow subsidiary bank chief minister stated directors took appropriate steps putting bank administration placed early october press release stated domestic branches centres internet operations open business usual domestic deposits fully guaranteed government banking special provisions act transfer retail deposits bank treasury holding company sell dutch bank ing direct million day placed afternoon telephone conversation finance minister chancellor evening governors central bank iceland interviewed public service broadcaster stated state intend pay debts banks little compared government measures intervention washington mutual suggested foreign creditors unfortunately claims announced taking steps freeze assets freezing order passed october came force minutes later order treasury assets introduced provisions prevent sale movement assets held central bank iceland government iceland freezing order took advantage provisions sections schedule anti terrorism crime security act treasury believed action economy likely taken certain persons government resident country territory outside prime minister gordon brown announced government launch legal action iceland concerns compensation estimated said press conference following day government outraged government applied provisions anti terrorism legislation dubbed act chancellor said government foot entire bill compensate retail estimated billion reported billion assets frozen government financial services authority declared singer subsidiary bank default obligations sold edge internet bank ing direct singer administration billion deposits customers sold ing direct scale run edge deposits transactions completed october described government actions singer abuse power unprecedented actions taken banking special provisions act days bank day sweden central bank credit facility billion swedish million available bank swedish subsidiary loan pay creditors october placed following resignation entire board directors bank said technical default loan agreements subsidiary placed administration subsidiary asked obtained suspension payments similar chapter protection district court geneva office branch subsidiary prevented making payments swiss swiss federal banking commission directors subsidiary isle man decided wind company consultation authorities finnish financial supervision authority announced having taken control branch 6th prevent money sent iceland day treasury issued licence freezing order allow london branch continue business second licence issued october bank england provided million secured loan help returns creditors october norwegian government took control norwegian operations including bank assets norway october central bank iceland asked remaining independent financial institutions new loans replace shares pledged previously lower value worthless value estimated billion billion banks known stated day provide new billion million loan turn government help problem won solved way said ceo october emerged norwegian export credit company complaint norwegian police concerning alleged million norwegian million bank acted agent loans companies loans paid early kept cash merely continued regular payments effectively taking unauthorized loan stock market trading shares financial companies iceland exchange suspended october order thursday october trading exchange frozen days government attempt prevent panic spreading country financial markets decision unusual market conditions share prices having fallen start month closure extended monday october continuing unusual market conditions market reopened october main index iceland corresponds compared closure reflects fact value big banks form value iceland set zero values varied trading shares iceland remains suspended week thin trading iceland closed october terms euro terms historic high july trading shares financial services companies resumed december companies account iceland values shares companies dropped sharply index closed day trading shares remains suspended prices respectively sovereign debt credit rating agencies monitor iceland sovereign debt lowered ratings crisis outlook future ratings changes negative government relatively healthy balance sovereign debt budget surplus recently estimated debt budget deficit addition value foreign currency bonds matured remainder million foreign currency debt service million government ability pay agencies believed government issue foreign currency bonds cover losses banks overseas operations stimulate demand domestic economy iceland goes recession team experts international monetary fund arrived iceland start october talks government industry minister said favourable help allow interest rates lowered october central bank iceland announced talks russian ambassador iceland victor billion loan russia loan given years interest rate basis points central bank iceland governor later clarified loan negotiated according prime minister investigating possibility russian loan mid summer questioned matter press conference said received kind support requesting friends situation like look new friends team arrived moscow october discuss possible loan russian deputy finance minister said meeting took place friendly atmosphere working thoroughly issue final decision day central bank iceland drew swap facilities central banks denmark norway million iceland swap facilities countries total billion iceland seeking assistance european central bank precedent currency swap arrangements switzerland non member european_union october tentatively agreed lend billion loan approved executive board november delay iceland found caught classic situation loans countries secured program approved government spoke gap funding plans dutch finance minister stated netherlands oppose loan agreement reached deposit insurance customers netherlands led package finally agreed november loans currency norway sweden finland denmark addition poland offered lend islands offered government reported russia offered lend poland day germany netherlands united_kingdom announced joint loan related deposit insurance dispute causes banks iceland set stage banks debts foreign companies accumulated crisis banks unable debts estimated major banks held foreign debt excess billion resident compared iceland gross domestic product billion early march cost private deposit insurance deposits far higher sum deposited european banks ranked economist early currency world based big mac index suffered effects carry trading coming small domestic market iceland banks financed expansion loans lending market recently deposits outside iceland form external debt households took large debt equivalent income led inflation inflation exacerbated practice central bank iceland issuing loans banks basis newly issued uncovered bonds effectively printing money demand response rise prices months september compared target central bank iceland held interest rates high high interest rates compared united_kingdom example encouraged overseas investors hold deposits leading monetary inflation money supply grew months september compared growth situation effectively economic bubble investors true value banks world banks found increasingly difficult impossible roll loans market creditors insisting payment banks willing fresh loans situation bank normally ask loan central bank resort iceland banks larger national economy central bank iceland government guarantee payment banks debts leading collapse banks official reserves central bank iceland stood billion end september compared billion short term international debt banking sector billion billion retail deposits situation worse fact operating branch legally independent subsidiary completely dependent central bank iceland emergency loans turn bank england help financial services authority aware risk considering imposing special requirements deposit taking banks weeks crisis plan implemented forced banks cut interest rates stop taking new deposits sparked sort bank run designed prevent authorities planning bringing restrictions foreign banks operating branches transfers funds parent banks parental operated legally independent subsidiary existence bank run accounts period october confirmed statement bank october said transferred substantial funds branch time commitments transfer funds bank subsidiary suggests bank run transfer substantial funds iceland significant downward push value effects speculation bank restructuring wholesale funding disappeared september leading collapse size combined balance sheet banks government iceland means save banks instead boards replaced failed banks dividing new old bank order avoid credit new state owned banks took domestic activities government capital ratio assets financial authority acted ring fence operations stating aim continued banking operations families businesses originally known set october billion equity billion assets set october billion equity billion assets set october billion equity billion assets equity new banks supplied government amounted iceland new banks predecessors net value transferred assets determined recognised november net values estimated total debt billion iceland gross domestic product international businesses remained old banks winding operations obtained payments creditors similar chapter protection district court november rescue operations central bank restructuring banks increased public debt ratio percentage points effects iceland current economic climate country affected businesses citizens creation new organisation replaces old employees lose jobs radical restructuring organisation intended bank international operations similar job losses expected job losses compared registered unemployed advertised iceland end august companies affected example private sterling declared bankruptcy october national airline noticed significant slump domestic demand flights airline states year year international demand year spokesman airline said getting decent traffic markets trying let weak help stated impossible predict company profitable year newspaper cutting jobs merging parts operations media corporation newspaper ceased publication crisis resulting loss jobs particularly hard hit government restricting foreign currency essential products food oil million loan central banks denmark norway sufficient pay month imports october temporary delay affected payments country assets pension funds according expert expected shrink pension funds association announced benefits likelihood cut iceland expected shrink result crisis putting iceland measures economic depression inflation climb high end year unemployment late november registered workforce compared end august household debt foreign debt payment going costly october workforce experienced reductions pay working hours reduced according president federation labour figures lower expected registered unemployed iceland stated lost job october economic collapse july voted approve government plan iceland apply european_union membership iceland member free trade arrangement rejected membership concerns independence compromised prime minister elected april promised bring iceland help stabilize economy commissioner expressed support iceland membership stating country deep democratic traditions iceland welcome expansion plans september government iceland dissolved accession team suspended application join march foreign minister iceland stated sent letter withdrawing application membership approval european_union stated iceland formally withdrawn application outside iceland million cash local authorities invested banks representatives council met try persuade treasury secure money way customers money fully guaranteed local authorities kent county council money invested banks currently million transport london organisation operates coordinates transport services london large investment million local authorities working government advice invest money national international banks way spreading risk organisations said invested heavily include police services fire authorities commission hoped deposited money available fairly rapidly corresponding liquid assets assets loans offices longer emergency sitting october isle man government raised compensation chief minister isle man tony brown confirmed guaranteed operations subsidiary september government pressing iceland honour guarantee found protection october agreement reached dutch governments savings dutch citizens government cover savings accounts dutch citizens held subsidiary money lent dutch government total value deposits netherlands billion time iceland britain reached agreement general solution deposits total billion billion accounts figure covered investors guarantee fund equity billion end million exchange rates time far sufficient cover dutch british claims cost deposit insurance completely clear november financial services compensation scheme paid billion transfer deposits bank singer ing direct treasury paid additional million guarantee retail deposits higher limit treasury paid million guarantee deposits higher limit loan billion government expected cover claims relating exposure expected billion crisis prompted ministry foreign affairs reduce foreign aid developing nations effect aid cut greatly falling value budget international development agency reduced million million iceland foreign aid targeted sectors country particular expertise fisheries power substantial impact countries receive aid noticeably sri_lanka pulling altogether february wall_street_journal reported iceland new government trying raise million selling residences washington new_york london oslo august iceland parliament voted approve bill commonly referred bill pay united_kingdom netherlands billion lost deposit accounts initially opposed june bill passed amendments added set ceiling payment based country gross domestic product opponents bill argued crisis pay mistakes private banks watch governments government argued bill failed pass netherlands blocking planned aid package iceland international monetary fund deal iceland gross domestic product paid sterling terms netherlands receive iceland euro terms period talks dutch ministers january dubbed result specific actions agreed official investigations special investigation commission december parliament established special investigation commission sic came consist supreme_court justice served chairman parliamentary associate chair yale_university investigate causes lessons crisis commission released report april criminal investigations office special prosecutor founded passage bill parliament december aim investigate suspected criminal conduct leading connection wake banking crisis relate activities financial legal entities individuals appropriate follow investigations bringing charges court concerned april iceland state prosecutor hired norwegian french investigator led europe biggest fraud investigations corruption oil group special consultant member economic crime team investigate suspicions criminal actions period preceding collapse banks involve iceland business banking leaders stated investigation require minimum years build evidence secure february appointed government second attempt appoint role applicants previously police chief time unit staff members september cases investigation time managers banks collapsed financial crisis charged cases progressed slowly investigation focusing number questionable financial practices engaged banks half loans banks holdings companies connected banks money allegedly lent banks employees associates buy shares banks simply shares loans allowed paying interest loan end period plus interest loans allegedly written days banks collapsed allowed investor purchase shares later revealed investor bought stake loan holding company associated employees bank effect buying shares businessman sentenced years prison district court committing fraud real estate dealings pay total million interest bank winding board addition legal costs million profit fraud held real estate company confiscated supreme_court iceland increased sentence half years prison permanent secretary ministry finance sentenced mandatory years prison district court insider trading proceeds trade million including capital gains tax confiscated case supreme_court iceland upheld ruling time conviction handed court insider trading iceland supreme_court attorney acquitted district court involvement illegal increase share billion supreme_court iceland suspended license attorney year sentenced months prison months suspended years president sentenced months prison district court major tax sentence suspended additionally ordered repay nearly million unpaid tax supreme_court iceland increased suspended sentence months managing director corporate banking acquitted district court involvement case supreme_court iceland overturned ruling sentenced months prison involvement case managing director markets sentenced mandatory year prison district court insider trading ruling subjected million asset supreme_court iceland decreased sentence months prison million asset ground time months suspended years managing director corporate banking sentenced months prison district court major breach trust months suspended years supreme_court iceland acquitted chairman president group compelled district court pay billion contract signed acquitted district court alleged billion transferred money group account holding company special prosecutor appealed supreme_court iceland president bank sentenced mandatory half years prison district court involvement case following appeal sentence upheld february iceland supreme_court chairman savings bank acquitted district court involvement exeter case supreme_court iceland overturned ruling sentenced half years prison breach trust exeter case ceo sentenced months prison district court major breach trust months suspended years supreme_court iceland acquitted chairman fined million district court involvement illegal increase share billion special prosecutor appealed supreme_court iceland sentenced months prison months suspended years president bank sentenced mandatory years prison district court involvement case following appeal sentence increased half years february iceland supreme_court bank sentenced mandatory half years prison district court involvement case following appeal sentence increased half years february iceland supreme_court president savings bank acquitted district court involvement exeter case supreme_court iceland overturned ruling sentenced half years prison breach trust exeter case chairman bank sentenced mandatory years prison district court involvement case following appeal sentenced years february iceland supreme_court president acquitted district court involvement case supreme_court iceland overturned ruling sentenced half years prison involvement case managing director sentenced months prison district court market manipulation case months suspended president bank twice acquitted district court involvement exeter case supreme_court iceland overturned ruling sentenced year prison breach trust exeter case arrests fraud office march robert vincent arrested london fraud office ongoing investigation conjunction iceland special prosecutor office collapse bank indicted fact sued fraud office arrest receiving large sums compensation scrutiny business leaders crisis began iceland business leaders previously considered financial greatly developed iceland economy intense public scrutiny roles causing financial crisis owners group retail empire includes house oasis centre large portion iceland media known businessman golden subject satirical video youtube set theme movie godfather addition mistress later revealed details playboy lifestyle trial found guilty false accounting prompted group relocate united_kingdom frozen food charge shipping owned reportedly scrutiny rarely seen public apparently left country reportedly subjects ongoing investigation determine business practices warrant criminal prosecution statements politicians prime minister claimed iceland needs investigate unusual unconventional loans given banks senior politicians years crisis minister justice ecclesiastical affairs started blog detailing problems business sector efforts cover cited example politicians businessmen traditionally held tight grip media lost control dozens similar created stated written lot problems business sector years compare parts companies playing game media publishing look good hope foreign media soon begin understand going political aftermath parts public arranged protests central bank parliament government alleged lack responsibility crisis attracting people iceland population saturdays early november president iceland informal lunch foreign diplomats criticized iceland traditional friends particularly britain sweden denmark international monetary fund according memo norwegian embassy suggested russians want use air base russian ambassador replied need president quoted said iceland soon recover fight president necessarily agree government issues october gordon brown provisions anti terrorism crime security act freeze holdings united_kingdom iceland prime minister protested described terrorist law applied calling completely act angered british decision iceland decided submit formal complaint nato provoked equal entire population sign online petition set heading terrorists relationship got replied month later scheduled patrol december iceland standing army relies long term standing agreement nato group member states committed turns defend royal_air_force cancelled mutual agreement nato presumably member state having accepted overtake liability according poll late november favour early elections opposed poll november social democratic alliance led followed left green alliance independence party progressive party liberal party far respectively parliament met january protests force conflict protesters police january police tear gas disperse people square use anti nato protest government resignation prime minister announced january stepping leader independence party health reasons diagnosed having said travel netherlands end january treatment education minister independence party vice chairman serve prime minister absence leader social democratic alliance foreign minister undergoing treatment brain september government recommended elections held iceland commerce minister resigned january citing pressures nation economic collapse country political leaders failed agree lead country financial crisis acts minister dismiss director financial authority acknowledged lost faith government political system want shoulder responsibility said negotiations continuing coalition broke day apparently demands social democratic alliance leadership government government resignation president iceland president asked present government continue new government formed held talks political parties represented discussions social democratic alliance left green movement asked president negotiate formation new coalition government coalition seats short overall majority progressive party seven seats expected support coalition actually joining government party leader prime minister instead position went social democratic alliance minister social affairs social security new party march april prime minister stated solely responsible accepting controversial donations independence party million investment group group million strongly criticized april report special investigative commission financial collapse accused ministers government iceland parliament voted ministers charges office session september stand trial special court hear cases alleging misconduct government office time convened established constitution trial began march found guilty charges april holding cabinet meetings important state matters said face punishment minor offence crisis resolution recovery starting iceland financial position steadily improved crash economic rise unemployment appear arrested late growth way main factors important regard emergency legislation passed parliament october served impact financial crisis country financial authority iceland permission granted emergency legislation domestic operations largest banks larger foreign operations banks went second important factor success stand arrangement country november includes pillars pillar program medium term fiscal consolidation involving painful measures significant tax result central government debts percent second pillar resurrection viable sharply domestic banking system ruins international banking system government unable bail pillar enactment capital controls work gradually lift restore normal financial outside world important result emergency legislation country seriously affected european sovereign debt crisis despite contentious debate britain netherlands question state guarantee deposits countries credit default sovereign debt steadily declined points prior crash points june fact assets failed branches estimated cover claims influence ease concerns situation finally major factor resolution financial crisis decision government iceland apply membership july views feasibility membership mixed iceland action served enhance credibility country international financial markets sign success efforts fact government successfully able raise billion bond issue june development indicates international investors given government new banking system biggest banks foreign hands clean bill health major measures implemented government carried government took step apply membership iceland undertaken injection billion housing financing fund end plan approved aftermath iceland regarded europe recovery success stories years economic growth unemployment iceland attracting immigrants fill jobs currency effectively reduced wages making exports competitive imports expensive year government bonds issued lower nations portugal italy ireland greece spain member parliament noted adjustments currency painful government labor policies negotiations cooled government continued pursue membership iceland elected new government april priorities wanted negotiate debt foreign creditors failed banks deal lift long enforced november capital controls current capital controls ban swap exchange assets foreign currency effect trapped assets creditors theory mean interested accept return getting capital controls lifted government intent route saved money negotiated debt creditors national household debt relief fund enabling debt relief household july standard recommended iceland drop debt relief initiative result increased debt government making difficult lend credit markets high inflation economic recession equal government appointed present proposals best achieve government goal implementing combined capital control abolition debt relief households reporting deadline october