I watched the Eurovision movie, and I can’t stop thinking about Iceland’s fictional Central Bank Governor, Victor Karlosson.

Probably the most outrageous central bank character to ever be put on screen.

He gets the economics of Eurovision hosting all wrong.

THREAD time.

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And before I start, don’t @ me that it’s just a movie.

I know.

Spoilers ahead.

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We first meet Karlosson at a meeting to shortlist 12 acts for Söngvakeppnin (annual contest to pick the Icelandic entry).

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Why is he even there?

Does he not have something better to be doing, like an inflation meeting?

Why not just send an official?

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At the meeting, he argues that if Iceland wins, hosting the following year will “bankrupt the country” because they don’t have the infrastructure to host “half a million people”.

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The economics of Eurovision hosting is covered here.

https://www.rbs.com/rbs/news/2016/05/the-cost-of-winning-the-eurovision-song-contest.html

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Both claims are false.

Visitor numbers are 30-40,000 and the cost of hosting (£17-48m) can be offset by tourism spending.

It’s nothing like the Olympics, where countries can spend billions and get little back.

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Even if Iceland spent as much as Azerbaijan in 2012, it would only represent 0.32% of Iceland’s GDP.

Far from bankruptcy.

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Iceland has an indoor arena with capacity of 11,000.

Not far off the Malmo and Vienna arenas which hosted 15-16,000.

https://en.wikipedia.org/wiki/Laugardalsh%C3%B6ll

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Normally a central bank governor would make his case and go back to measuring inflation, but Karlosson is no ordinary central bank governor.

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We see him again on the committee after all the Eurovision entrants are murdered in a freak explosion and Will Farrell’s act is the only remaining option.

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Karlosson tries to look upset at the prospect of not having a winning entry…

(he’s not)

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Later, as Will Farrell walks to the airport, Karlosson happens to drive by and offers him a lift.

“Hey, my inflation meeting was cancelled, hop in” – said no central banker ever.

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What comes next is just so surreal I can’t believe they put it in a movie.

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He tries to kill Will Farrell.

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And it turns out *he* planted the bomb which killed the 11 other Icelandic entrants.

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Karlosson’s central bank mandate:
1.Stable inflation
2.Low unemployment
3.Murder anyone with a shot at winning Eurovision

Ok, got it.

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Anyway, it all works out in the end because Iceland doesn’t win, and Karlosson is killed by a magical elf.

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The End.

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