| Summary: | Iceland and Latvia are small countries in Europe hit hard by the 2008 global economic and financial crisis. Both responded, but differently, especially when it comes to exchange rate policy. In Iceland the locally owned banking system collapsed while in Latvia the foreign owned banking system survived. After more than 5 years since the crisis erupted, sufficient time has passed for observers to begin seeing some outcomes from the different policy responses, both in terms of economic and social progress, and it is maybe time to see what lessons can be learned, for Latvia and Iceland and perhaps also for the European Union and the Euro area. Latvia, Iceland, global crisis, economic policy, social progress
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