Economics
A Currency ‘Tragedy’ and the Geniuses Tasked With Repairing It
- Iceland has appointed a panel to design currency regime
- A currency peg is one of many options being considered
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Few currencies in western Europe have been put through the wringer like Iceland’s krona.
After the experiences of the past decade, during which an economic train wreck morphed into a textbook recovery, Iceland is now hammering out a new exchange-rate regime. The choices it makes will provide valuable insight into how small currencies can survive global shocks.