What monetary regime should Iceland have?
By Lars Christensen, CEO & Founder, Markets & Money Advisory
In an interview with the Financial Times over the weekend Icelandic Finance Minister Benedikt Johannesson hinted that it could be an idea to peg the krona to the euro.
It is no secret that I am not a great fan of pegged exchange rates and I certainly believe it would be very misguided to peg the Icelandic krona to the euro, but it is nonetheless reasonable to ask the question what monetary regime Iceland should have after currency controls have been lifted.
In 2015 I spoke at a conference in Reykjavik on exactly this topic.
Watch my speech here. I haven’t changed my mind on this topic since then.