Since its banks crashed Iceland devalued its currency massively and imposed capital controls.
And a strange thing has happened: although Iceland is generally considered to have experienced the worst financial crisis in history, its punishment has actually been substantially less than that of other nations.
And here’s employment:
The moral of the story seems to be that if you’re going to have a crisis, it’s better to have a really, really bad one. Otherwise, you’ll end up taking the advice of people who assure you that even more suffering will cure what ails you. (Source)
Iceland’s rebirth suggests that it’s best to take your medicine, let the too big fail, and get on with rebuilding. (Source)
For more details: http://www.lisproject.org/conference/papers/olafsson-kristjansson.pdf