naked capitalism: Iceland Proves That in a Financial Crisis, Breaking Glass and Trashing Currency is a Good Remedy: "Iceland ground zero for the most spectacular banking industry boom and bust in the history of man. Iceland managed to go on a debt party that saw its obligations soar to 850% of GDP, leaving America at a mere 350% firmly in the dust.
So how is Iceland faring now? One would assume still broke and chastened. One would be dead wrong.
The krona is down 50% from its peak, and it seems to have sparked a speedy revival. ...But Iceland and the Nordic countries can make move like that without precipitating competitive devaluations. What works individually does not work collectively."
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