financeguy
ONE love, blood, life
what kind of things would happen if a country goes bankrupt?
Well, there are quite a few examples from history. Unfortunately, as one would expect, it usually translates into a significantly reduced standard of living for the country's citizens.
Iceland does have one advantage in having its own freely floating currency which they can allow to devalue, hence making its exports more competitive. Hence, the market offers its own solution, of a sort.
That's why I find it quite amusing that some people are speculating that Iceland could join the euro. I don't see that as a panacea for their problems at all.