Reykjavik is the northernmost capital in the world, marked by cheerful pastel rooftops and a high-spirited night scene. Nearly half of all Icelanders live in Reykjavik; the city, with a population of mere 100,000 is often referred to as an “overgrown village”. Here is where you'll find all of Iceland's national glory, its theaters, night life, and much of its history. People have lived here ever since the first settler, Ingolfur Arnarson, arrived in the late 9th century and named the site “smoky bay” after the geothermal fog nearby. The city became world famous when American President Ronald Reagan and Soviet General Secretary Mikhail Gorbachev met here in 1986 and marked the beginning of the end of the Cold War.

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