Here’s a good article about the Icelandic sweater or Lopapeysa.
Although we’d like to add that if you buy one during your stay in Iceland we’d recommend you make sure it is hand knitted in Iceland. Many of the sweaters sold in stores are not handmade nor made in Iceland.
The hostess at Hagi, Bergljót, always has some of her own handiwork on offer during the summer so if you are interested just ask her to show you her latest creations.
the family at Hagi