Scandinavian Monetary Union after Iceland was elevated to a separate kingdom in union with Denmark in 1918. Iceland cut its ties to Denmark in 1944 and became a republic. The Icelandic króna soon became volatile, causing a high inflation and in 1980 a currency reform was introduced, in which 1 new Icelandic króna was set to 100 original ones.. The Scandinavian Monetary Union was inspired by the Latin Monetary Union, established in 1865. According to economic historians Ingrid Henriksen and Niels Kærgård:Was the Scandinavian Currency Union a success? Yes and no. When the Union functioned at its best, which was only from 1901
Kingdom of Iceland in order to represent the monarchy. During the first year of World War II, Iceland strictly enforced a position of neutrality and took action against both British and German forces that violated it. On 10 May 1940, Operation "Fork" was launched by the United Kingdom when military forces sailed into Reykjavík harbour and began an invasion of Iceland. The government of Iceland issued a protest against what it called a "flagrant violation" of Icelandic neutrality. On the day of the invasion, Prime Minister Hermann Jónasson read a radio announcement instructing Icelanders to treat the British troops as guests. The Allied