KTYS

I just happened to notice this story while I was researching something else this morning -- for those interested in economics.

Iceland offers risky temptation for Ireland as recession ends

”Iceland has finally emerged from deep recession after allowing its currency to plunge and washing its hands of private bank debt, prompting an intense the debate over whether Ireland might suffer less damage if adopted the same strategy.”

For those keeping track -- KTYS. Krugman Told You So.

The Icelandic Post-crisis Miracle

”The moral of the story seems to be that if you’re going to have a crisis, it’s better to have a really, really bad one. Otherwise, you’ll end up taking the advice of people who assure you that even more suffering will cure what ails you.”

More if you are interested:

Lands of Ice and Ire

”Oh, and while the IMF is demanding that Ireland cut minimum wages and reduce unemployment benefits, its mission to Iceland praised the “focus on preserving Iceland’s valued Nordic social welfare model.””

Don Brown
December 30, 2010