verðlagseining

Verðlagseining is a concept in economics, specifically related to the Icelandic economy. It can be roughly translated to "price setting" or "price adjustment." The term was first introduced in the context of the post-war Icelandic economy, where it was used to describe the government's efforts to control and regulate prices.

During the 1940s and 1950s, the Icelandic government implemented a range of policies aimed at stabilizing the economy and ensuring full employment. Verðlagseining was a key component of these policies, involving the government setting prices in industries such as agriculture, textiles, and construction. The goal was to create a balanced economy that would prevent the exploitation of workers and ensure fair prices for consumers.

The concept of verðlagseining was based on the idea that prices should be set in a way that would promote economic growth and stability. The government would fix prices at a level that was considered fair and reasonable, taking into account factors such as production costs, wages, and demand. The government would also regulate the supply and demand of goods and services to ensure that the market functioned in a way that was consistent with national goals.

Verðlagseining was seen as a key contributor to Iceland's post-war economic success, allowing the country to achieve full employment and a stable currency. However, it is worth noting that the policies were not without controversy, with some critics arguing that they limited competition and innovation in certain sectors.