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