Why Iceland should keep their króna – and follow the euro
Iceland should abandon the flexible exchange rate of the króna and the present inflation target as well as their own central bank – in favour of a currency board with a truly fixed exchange rate of the króna to the euro. The euro should be used as the reserve currency of Iceland. This is the advice given by two Swedish researchers from Lund University in a new report, commissioned by the Icelandic government.
The report, Lessons for Iceland from the monetary policy of Sweden, will be presented by the researchers Lars Jonung and Fredrik NG Andersson on a conference in Iceland on June 6th.
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