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Iceland did what numerous other countries have done in the past to deal with the same situation, including Argentina in the 2000s, Sweden in the 90s and the US
by martythemaniak 14y ago
Iceland did what numerous other countries have done in the past to deal with the same situation, including Argentina in the 2000s, Sweden in the 90s and the US during the 30s.
- philwelch 14y agoThe US during the 30's ended up remaining in a deep depression that didn't let up for well over a decade, something that casts doubt on any of the actions the US government took during the time.
- yxhuvud 14y agoUS during the 30's started off trying to use austerity. That is what made it longer and more painful.
- deleted 14y ago[deleted]
- chalst 14y agoOne of those things is not like the others: the Argentinian financial crisis was about the Argentine government defaulting on its sovereign debt, which did not happen in the other cases. The Argentine crisis was about the government (i) borrowing excessively, (ii) having its debts in a foreign currency (dollars), and (iii) maintaining a fixed exchange rate. Rather like the Greek situation. Sweden was in a similar situation to Iceland (though not as extreme), but chose to guarantee bank creditors - so it behaved in the opposite manner to Iceland, making the same choice that Ireland did, though it was much smarter in how it went about recapitalising banks than Ireland was.