A negative real interest rate is therefore unsustainable under the current situation.
Taming the ISK is a necessary first step in restoring economic stability in Iceland.
Deflation and currency stability are key to restoring the economy. Replace Iceland with any other country in trouble right now for future headlines. Also note that it was the IMF which dictated this. One has to wondering what other policies will be enforced on other countries in trouble? Also one has to wondering if excessive rate cuts can cause these problems. I wonder if any one told Ben and Hank?
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