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Three charts that show Iceland's economy recovered after it imprisoned bankers and let banks go bust - instead of bailing them out
Key Excerpts from Article on Website of The Independent (One of the UK's leading newspapers)
Posted: November 1st, 2015
http://www.independent.co.uk/news/business/news/three-charts...
Six years ago ... Iceland made the shocking decision to let its banks go bust. Iceland also allowed bankers to be prosecuted as criminals in contrast to the US and Europe, where ... chief executives escaped punishment. While the UK government nationalised Lloyds and RBS with tax-payers money and the US government bought stakes in its key banks, Iceland ... said it would shore up domestic bank accounts. Everyone else was left to fight over the remaining cash. It also imposed capital controls restricting what ordinary people could do with their money. The plan worked. Iceland took a huge financial hit, just like every other country caught in the crisis. This year the International Monetary Fund declared that Iceland had achieved economic recovery 'without compromising its welfare model' of universal healthcare and education. Other measures of progress like the countrys unemployment rate, compare ... well with countries like the US. Rather than maintaining the value of the krona artificially, Iceland chose to accept inflation. This pushed prices higher at home but helped exports abroad in contrast to many countries in the EU, which are now fighting deflation. This year, Iceland will become the first European country that hit crisis in 2008 to beat its pre-crisis peak of economic output.
Note: Iceland's plan to retake control of its money supply from the banks was labelled "Radical" by mainstream economists. Now we learn that their plan rooted out financial industry corruption and successfully got their economy back on track.
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