5 Things You Need to Know about Iceland’s Fractional Reserve Banking Scheme

#2. Iceland has suffered terribly from bad monetary policy

Iceland suffered significant monetary instability throughout much of the 20th century. Various government programs like currency controls and inflation preceded the remarkable figure of 83% inflation in 1983 alone! Inflation was so bad, they decided to redenominate the currency by a factor of 100, which is really a fancy term for dividing the numbers on their bills by 100.

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