Academics join Iceland's banking committee

Professors Anne Sibert and Gylfi Zoega, from the School of Economics, Maths and Statistics, have been appointed to Iceland’s new monetary policy committee, to advise the government on how best to recover from the country’s worst-ever financial crisis.

Iceland has been particularly affected by the global economic downtown, and the new committee faces immediate challenges to heal a bankrupt banking system, tackle rising unemployment, restore a collapsed currency market and address a lack of trust abroad.

"Iceland needs to restore credibility with foreign governments and institutions," said Prof Zoega. "It needs to strengthen its relations with Europe, negotiate with foreign creditors and ensure that viable businesses have the necessary support to survive this financial crisis."

Some commentators have suggested that London is 'Reykjavik on the Thames' implying that the UK faces similar economic problems: Large banks that may be in trouble, high levels of public and personal debt, falling house prices, rising unemployment and falling output.

"Were the UK banks to default, this would in a way, be a repeat of what Iceland is going through." concluded Prof Zoega.

The committee will meet eight times a year, and will first convene in mid-March.

Click the links below to visit their academic web pages:

• Prof Anne Sibert
• Prof Gylfi Zoega