Oslo, Reykjavik - Iceland should consider replacing its currency with that of neighbouring Norway, an Icelandic economics professor suggested in an interview published Wednesday.
The move was necessary since confidence in the Icelandic central bank has withered in the wake of the recent financial turmoil, Professor Thorolfur Matthiasson of the economics faculty at the University of Iceland told the Bergens Tidende newspaper.
"To get room to maneuver we need a plan A and a plan B," Matthiasson said, noting that one option was to consider joining the European Union and adopting the joint European currency, the euro.
"In the short-term, it may be more realistic to pursue a monetary union with Norway," he added.