How Iceland Benefitted By Having Its Own Currency

This article shows how Iceland, which endured a catastrophic financial crisis, adjusted to the crisis. Unemployment is lower than in countries in the eurozone which also had a financial crisis, and wages in its domestic currency have risen. Wages priced in the euro, however, have fallen and have made its products less expensive in international trade. In other words, having its own currency allowed Iceland to adjust to its crisis differently. Distressed countries in the eurozone were not able to adjust via currency depreciation.