Denseman on the Rattis

Formerly known as the Widmann Blog


Icelandic currency board

East African Currency board
Originally uploaded by DEMOSH

This is really annoying!

Just yesterday I was planning to blog that I thought Iceland should peg their currency to the euro, but I was tired and decided to postpone it till today, and now those bastards have gone ahead and have stolen my idea, and I can’t even prove I thought of it first! ;-(

Anyway, I’m not sure just pegging the króna to the euro is very safe, not given the reportedly diminutive size of the Seðlabanki’s euro reserves.

If at all possible, I’d suggest introducing a proper currency board. I’m not entirely sure whether that can be done while keeping the currency, or whether it’d be better to issue a new currency, the Evrópukróna, at par with the euro.

As far as I can tell, a currency board would give Iceland many of the benefits without all the potential problems that a unilateral introduction of the euro would have.

2 thoughts on “Icelandic currency board

  • Hawnkneerve

    🙂 The natural photo of the new arrival, taken by Emma Tallulah’s dad,


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