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
Iceland in the Cold War a US military base in Iceland. One US official proposed that the US fund pro-Western political parties in Iceland.The US Ambassador to Iceland decided against this because the political risks were too high. If the operation had been exposed, the prospects for a military base in Iceland would have been low, owing to, what the Ambassador described as, the fierce nationalism, independence and sensitivity of the Icelanders. The Ambassador noted that it was safer not to deceive the Icelanders, but to engage with the Icelanders above the board and trust that they would continue to lean westward. In case of