tag:blogger.com,1999:blog-8817171247555815363.post3871503222165596436..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 27/02/2011: Ireland v Iceland: Economy, part 1TrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8817171247555815363.post-84618208236708324782011-02-28T14:33:12.820+00:002011-02-28T14:33:12.820+00:00A very enlightening post. I hope your next post wi...A very enlightening post. I hope your next post will look into the interest rate issue - there seem to be some misconceptions floating around.<br /><br />Dan O'Brien says:<br /><br />"Very high interest rates, which were hiked to 18 per cent in an attempt to stabilise the currency, further hit heavily indebted Icelanders."<br /><br />and in another article:<br /><br />"The fallout was immediate and massive: the currency collapsed and capital controls imposed to prevent it falling further, interest rates soared to achieve the same end"<br /><br />O'Brien is mistaken in thinking that Icelandic interest rates were raised after the collapse.<br />Rates have steadily come down since 2008 and are now at 4.25% (http://tolur.island.is/).<br /><br />O'Brien is also not entirely right in implying that Iceland didn't have a housing bubble or that the Icelandic construction sector has not suffered big layoffs, though it is true that this is not as big a part of the Icelandic story as it is of the Irish one.Haukurhttps://www.blogger.com/profile/17669738332175762658noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-90564707863773768712011-02-28T11:09:11.975+00:002011-02-28T11:09:11.975+00:00P Krugman is a "lefty" shill.
Since he...P Krugman is a "lefty" shill. <br /><br />Since he has a Nobel, like Obama, "it is official"<br />(Copyright King's Speech)<br /><br />I look forward to seeing increasing divergence between the performance of the two Island Republics. <br /><br />Adams will undoubtedly add the six counties in due course.Fungus the Photo!https://www.blogger.com/profile/14879977479841544025noreply@blogger.com