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A look at Iceland, four years on

7 January 2013 Last updated at 23:58 GMT

Just over four years ago, the tiny island republic of Iceland experienced the worst economic collapse of any European country.

Growth sank, house prices plunged, unemployment soared and all the banks had to be nationalised.

But unlike the UK, Iceland let its troubled banks simply die and since 2011, the country has seen growth average at over 2% - comfortably more than the UK.

The macro economic good news however masks the pain being felt by many ordinary Icelanders.

BBC Newsnight's Joe Lynam has been there to ask what we can learn from the Icelandic experience.