(2009-07-27) Iceland Recovery

Iceland seems to be recovery faster than others from Credit Crisis 2008 due to their flexible Exchange Rate-s bringing in foreign currency. Governor Svein Harald Oygard says currency therapy is working as it should. "If you lean back and look you can see that fall of the krona accentuated the shock at first, but it is also now working as a turbocharger for recovery. "We've seen a strong hit on wealth and asset values, but the story for real economy is very different."... Icelanders have taken a hit, of course. Unions have accepted real wage cuts of 10pc. Health care and welfare is being cut 5pc, education 7pc, and the rest 10pc. This is comparable to what is happening in Ire Land, but again there is a difference. Dublin faces a Sysphean task as collapsing tax revenues force ever deeper austerity: Reykjavik is over the worst.