The incoming administration of Prime Minister Kristrún Frostadóttir, which takes over on Sunday, also said it will set up a panel of experts to look into the advantages and disadvantages of retaining the Icelandic crown over adopting the Euro.
The incoming administration of Prime Minister Kristrún Frostadóttir, which takes over on Sunday, also said it will set up a panel of experts to look into the advantages and disadvantages of retaining the Icelandic crown over adopting the Euro.
Ask Greece how great it is being unable to print money. Or Kosovo. Or Montenegro. Or Spain.
Literally the only benefit to being part of the Eurozone is that tourists don’t need to exchange their currency. That’s it. Otherwise it’s just giving up sovereignty to France and Germany. During financial crisis it’s even worse, it basically makes the government unable to respond to rapid shifts in the market and forces them to slash public spending to pay for bailouts.
Iceland wouldn’t jail bankers if it was in the Eurozone. Guaranteed.
Or, you know, you could have mechanisms in place to do it without currency manipulation. Some countries have done that since before the Euro – the Euro inherited its price stability mandate from the German Mark. Many countries adopting the Euro then said, “well, looks like we’re doing it the German way now”. And they did. Countries like Kosovo are doing it without even being an Eurozone member, Bosnia and Herzegovina is doing it, the Convertible Mark changed its peg from German Mark to Euro.
Tons of countries, large and small, strong and weak, all voluntarily choosing a stable currency over being able to inflate yourself out of nasty situations. Maybe, just maybe, it’s not actually necessary to have that capacity, there’s other ways to deal with things, and having a stable currency is overall beneficial.
And, seriously, fuck Greece. Also fuck the Troika which fucked up debt restructuring but there’s not a single thing about the Greek tragedy that wasn’t caused by the Greek government being absolutely irresponsible with money. Maybe, next time, don’t spend money on useless BS while you’re already neck-deep in debt.
And being able to deflate your currency wouldn’t really have helped because do you really think anyone would lend money to Greece in Drachme.