Verðlagsleiðréttingin
Verðlagsleiðréttingin, often translated as "price level adjustment" or "inflation correction," was a significant economic policy implemented in Iceland in the 1980s. Its primary goal was to combat the high inflation that had plagued the country for years. The core mechanism of this policy involved adjusting various economic variables, such as wages, taxes, and interest rates, to reflect the prevailing rate of inflation.
The intention behind Verðlagsleiðréttingin was to create a more stable economic environment by neutralizing the distorting
While Verðlagsleiðréttingin was a prominent feature of Iceland's economic policy during this period, its effectiveness and