Iceland and the International Monetary Fund set at positive 2-3 percent by 2010. Additionally Iceland determined that it would not support the losses of its pension funds and social service programmes in order not to take up additional obligations. One of the primary objectives of the Icelandic government in seeking an IMF programme was to stabilize the ISK and to set a path for its gradual appreciation. To stabilize short term pressures on the ISK the Central Bank of Iceland raised interest rates to 18% and prepared to back the krona with its foreign reserves, specifically for which Iceland asked for an IMF programme . The
Wage unit Wage unit The wage unit is a unit of measurement for monetary quantities introduced by Keynes in his 1936 book "The General Theory of Employment, Interest and Money" ("General Theory"). A value expressed in wage units is equal to its price in money units divided by the wage (in money units) of a man-hour of labour. The classical economists believed that the value of a product could be identified with the number of man-hours of labour which went into its production. This value was inherently real. Economic values can always be expressed in monetary terms except in a barter economy.