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Analysis

Iceland’s recovery will be tough to sustain

By Leonid Bershidsky, Bloomberg View March 16, 2017

The end of Iceland’s nine years of capital controls on Tuesday is an occasion to celebrate for Icelandic businesses — and for those economists who, like Nobel Prize winner Paul Krugman, touted Iceland’s post-crisis recovery as an example of how it should be done. Yet even after almost a decade, Iceland may still need a relatively closed financial market for that recovery to stick.

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