What is mostly amazing is that it took so long, but the head of Iceland’s central bank, having refused to fall on his sword, is expected to be shown the door tomorrow. The United States is somewhat rare in isolating the head of its Central Bank from political removal- though I suspect if Congress really wanted to remove a Chairman badly enough, it could be done. In this case, however, Oddsson (the Central Banker in question) may be something less than culpable.
Iceland’s parliament passed a bill Thursday that will oust the country’s central-bank chief, David Oddsson, who is widely blamed for a banking-system collapse that has wreaked havoc on the island’s economy.
Mr. Oddsson, Iceland’s prime minister from 1991 to 2004 and central-bank chief since 2005, had refused to quit, despite appeals from new prime minister Johanna Sigurdardottir and regular public protests demanding that he go.
Ironically, and as the Journal article points out, much of the central bank’s decision making power was legislated away some years ago, but when someone has to go, they have to go. It’s cold outside in Iceland nowadays too.
Given Oddsson’s claim that he warned repeatedly that banks were severely overextended, it is probably worth reflecting on the wisdom of introducing the whim of political accountability to central banks in light of Iceland’s case.
Iceland Parliament to Oust Central Bank Chief [The Wall Street Journal]
“Given Oddsson’s claim that he warned repeatedly that banks were severely overextended, it is probably worth reflecting on the wisdom of introducing the whim of political accountability to central banks in light of Iceland’s case.”
You had me for a second there EP, leaving that till the end. I was worried you would forget to bring up your political/philosophical biases!
You truly make Ayn Rand proud.
Poll: Do You ‘Win’ or ‘Lose’ with The Obama Budget?
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Poll: Do You ‘Win’ or ‘Lose’ with The Obama Budget?
under top news and analysis here: http://www.cnbc.com/id/15839285
“You had me for a second there EP, leaving that till the end. I was worried you would forget to bring up your political/philosophical biases!
You truly make Ayn Rand proud.”
Well, since it was so obvious to you, perhaps you won’t mind letting us all know what part of my post was “Randian,” exactly. Or perhaps you have been using that “Rand” brand incorrectly all these years?
Iceland’s central bank is a totally different dealio from the Fed. The Althingi could have told him to fuck off a long time ago.
THe Icelanders monumentally screwed themselves over the last few years — I knew they were in serious trubs when I saw 9 year olds in Reykjavik buying ice cream cones and pizza with credit cards back in 2005.
@EP – Central bank independence is pure Randianism!
Sorry, I just got carried away. Guess that means Gordon the Brown Engine, Jacques Delors, and I have been secretly believers in self-indulgent monologues, wankery about the non-existence of market failure, perfect perception, and the sexual subordination of women.
(well, the first and the last in the list aren’t that bad)
@ Novice
Rand would hate to give the government power over interest rates and money creation (central banking). She was a hardcore goldbug dude.
It’s called Atlas Shrugged – one of the most popular books ever written – available at amazon or the library.
You should read it.
What do Iceland, Dubai, Russia have in common and so are India and China?
These are all places Erin Burnett exploited and jinxed them all pretty bad!
She just came back(?) from China (did she really go there?) and the Shanghai Index is now crashing part 2 !
India is dong bad as well.
Oh, my sweet and beautiful Erin, please don’t go to my country yet!