IMF urges states to adobt the Euro. A solution for Iceland?

It is interesting to read this article in the Financial Times, especially if its true.

In short, the IMF is suggesting that eastern and central European states should scrap their own currency and adopt the Euro without being members of the EU. Just to get some stability and fix the current global financial crisis.

This might be an interesting development for Iceland. Could this be a solution for Iceland? And is the IMF willing to change its policy here. It has not been very flexible so far. This will be interesting issue to follow.

What is happening in Iceland is that there are three major factions.

The first one would like to join the EU, and adopt the Euro ASAP.

Then there are those who want to keep the ISK (the krona) because they believe that it will steer us out of the problem, and staying outside the EU.

Then there those who want to adopt another currency unilaterally, the Euro, the US Dollar, the Swiss Frank, without joining the EU.

One group is smart, two are delusional. But that is the reality we face here in Iceland. Our hope is in common sensibility and the will to fix problems by taking the heads out the sand.

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