Brian Pan

The people of Iceland are the latest victims of the global downturn as the economy in Iceland has suffered a collapse. A number of factors including a failure of monetary policy following a banking collapse has led to a soaring 30% inflation, the resignation of Prime Minister Haarde and the government, and the inability to transfer money abroad (and thus the inability for Iceland to import and export to and from their country).

Iceland’s long-term outlook is fortunately positive since it has natural resources and a well-educated workforce so, if nothing else, it will still have the ability in the future to generate real wealth. But for now, Icelanders will have to suffer through inflation, soaring loan payments, and a economy that may need some jump-starting from the world community.

Overview of Iceland’s financial problems
http://news.bbc.co.uk/2/hi/business/7658908.stm

Timeline of recent events
http://news.bbc.co.uk/2/hi/europe/7851853.stm

Country profile
http://news.bbc.co.uk/2/hi/europe/country_profiles/1025227.stm