The IMF recomended Iceland to adopt the Euro in October 2008

April the 6th the Financial Times published an article about the IMF and its suggestions 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 was mentioned here on Icelandtalks that same day. It was suggested here that this could be a solution for Iceland. The interesting part is that not many of the Icelandic media covered this IMF suggestion. It was briefly mentioned only.

In an interesting radio interview this morning, economist Gudmundur Olafsson claimed he had emails from very reliable sources that the IMF suggested or recommended that Iceland should adopt the Euro unilaterally in early October, when the economy of Iceland collapsed.

Mr Olafsson was furious that this had not been reported. Not a single word about this suggestion had leaked out and this had never been discussed. He blasted the media for its role in this. They have been dragging their feet for years and should have reported this.

It is not surprising that the media did nothing to cover this. They have been on their heels for a long time, that is correct. But compared to the information out there, rumours and leaks from within the government system, this should have been known to some of the major media outlets. According to Mr Olafson this was kept secret from the public and he asks why this was kept such a big secret?

Still the local media has not reported on this at all.


About this entry