Iceland’s economic miracle – inflation and interest rates of 13.75%

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There are those who would like to suggest that Iceland is the next economic miracle state. Its flat taxes, high income, large overseas investment portfolio; all are hailed as signs of its success.

So take a sober moment and reflect on the fact that yesterday, according to the FT:

Iceland's central bank raised interest rates by 45 basis points to a record 13.75 per cent on Thursday in an attempt to rein in stronger-than-expected inflation in its fast growing economy.

Now is that a success story for the Icelandic population at large, or a story of the exploitation of their territorial space?

I leave you to choose. I know what I think.