Can you recommend a good article about how this works? It sounds evil at first glance, but thinking about it some more it might be very good. This discourages

Can you recommend a good article about how this works? It sounds evil at first glance, but thinking about it some more it might be very good. This discourages people from buying houses with leverage when they think inflation is going to accelerate. It won't help them, because the leverage is inflation-indexed! Here in the USA, every time inflation starts to accelerate people hoard housing; this causes all sorts of social problems. Also: in the USA the only other ways for most ordinary people to easily hedge against inflation are buying gold or loaning money to the government (inflation-indexed government bonds). It sounds like your country has inflation-indexed mortgage bonds. I would rather lend money to my neighbor than my government. Personally, I am incredibly impressed with how you guys dealt with the 2007 global financial crisis. You did the right thing: you threw the criminals in jail. Even though they were bankers. I now evaluate Iceland's economic policies from the starting assumption that they understand the world better than we do.