A new report on economic management and industry cooperation, presented yesterday by the Institute of Economics at the University of Iceland, concluded that Iceland should adopt the Euro.
Tryggvi Thór Herbertsson, manager of the institute, said an imbalanced economic management and unfortunate business decisions might lead to Iceland switching currency, from the Icelandic Krona to the Euro. Fréttabladid reports.
The report says the Icelandic government has failed in fighting the inflation and the imbalance in the economic system by not supporting the operations of the Central Bank in Iceland sufficiently. The Central Bank is criticized for reacting too slowly to the inflation.
Herbertsson told Fréttabladid that if it is impossible to have normal economic growth in Iceland without leading to inflation, adopting a foreign currency might be the only solution.