The International Financial Crisis: THE CASE OF ICELAND – Are there Lessons to be Learnt?
Iceland became the first developed economy to fall victim to the current international
financial crisis. An experiment with the smallest independent currency area in the
world (pop: 300 thousand), based on the króna as a national currency, has ended in a
national disaster. Iceland suffered a twin- crisis, with the value of the currency in a
free fall and the national financial system in ruins.