Iceland and the International Monetary Fund Intent. The conditionalities include details of Banking Sector restructuring, changes to Fiscal Policy including government austerity and changes to exchange rate policies. Following the global financial crisis in 2007-2008 Iceland's banking sector collapsed leading to wide ranging unemployment and a lessening of support for the Icelandic currency - the Icelandic Krona ISK. This was triggered by an insolvency of the private banking sector. The largest Icelandic banks had liabilities in excess of 80 percent of GDP . Iceland requested assistance from the IMF and from its Nordic partners in the Nordic Council. The goal of Iceland in this market intervention
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.