Paul Krugman: Guess Who’s Emerging From the Crisis?


Guess Who’s Emerging From the Crisis?, by Paul Krugman, in NY Times:

FT Alphaville:

Iceland, of course. Kitchen-sinked and cleaned-up, the Icelandic central bank has just decided to push up rates by 25 basis points to combat signs of inflation amidst “robust” domestic demand.

From Statistics Iceland:

GDP is still below previous peak, but I think one could argue, much more so than in say America, that a significant part of that peak involved a Ponzi financial sector that isn’t coming back.

I think I was one of the first outsiders to notice that Iceland’s heterodoxy was yielding a surprisingly not-so-terrible post-crisis outcome.

And yes, the recovery is better than Estonia, and much better than Latvia.

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