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
History of Iceland stop to that when the war began in September. Iceland demanded Britain allow it to trade with Germany, to no avail. The occupation of Denmark by Nazi Germany began on 9 April 1940, severing communications between Iceland and Denmark. As a result, on 10 April, the Parliament of Iceland took temporary control of foreign affairs (setting up what would be the forerunner of the Ministry for Foreign Affairs) and the Coast Guard. Parliament also elected a provisional governor, Sveinn Björnsson, who later became the Republic's first president. Iceland became "de facto" fully sovereign with these actions. At the time, Icelanders