The man seen as both the architect of Iceland’s recent economic boom and a key figure in its subsequent downfall has been fired by the government. David Oddsson, a former prime minister, had defied calls for his resignation as central bank governor. So parliament changed the structure of the bank and removed the board of governors.
Interim Prime Minister Johanna Sigurdadottir took over when the previous coalition crumbled under the weight of the global financial crisis. She made reforming the central bank a priority. Angry Icelanders attacked the former government’s handling of the credit crunch, and have vilified Oddsson for not reining-in the banks as they went on a worldwide buying spree. They brought unprecedented prosperity, but ultimately wrecked the economy. Five months later, Iceland is still not functioning effectively.