Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis
In 2008, the three main banks in Iceland collapsed. There is strong evidence that the banks would have become insolvent even without the subprime crisis. Yet there was a marked difference in opinion at the time about the viability of the Icelandic banks. A clean bill of health was given by the commi...
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2016
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credwardepubl:10.4337/ejeep.2016.03.06 2024-06-09T07:47:09+00:00 Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis McCombie, John S.L. Spreafico, Marta R.M. 2016 http://dx.doi.org/10.4337/ejeep.2016.03.06 https://www.elgaronline.com/view/journals/ejeep/13/3/article-p323.xml https://www.elgaronline.com/downloadpdf/journals/ejeep/13/3/article-p323.xml unknown Edward Elgar Publishing https://creativecommons.org/licenses/by/4.0/ European Journal of Economics and Economic Policies: Intervention volume 13, issue 3, page 323-338 ISSN 2052-7764 2052-7772 journal-article 2016 credwardepubl https://doi.org/10.4337/ejeep.2016.03.06 2024-05-15T13:18:41Z In 2008, the three main banks in Iceland collapsed. There is strong evidence that the banks would have become insolvent even without the subprime crisis. Yet there was a marked difference in opinion at the time about the viability of the Icelandic banks. A clean bill of health was given by the commissioned reports of Mishkin in 2007 and Portes in 2008, just prior to the collapse, whereas severe reservations about the Icelandic financial system were expressed by Wade, inter alios . These contrasting views were widely debated and may well have influenced both potential and actual foreign depositors in the banks. This paper analyses the disparate arguments put forward and contrasts it with the actual outcome. It considers the influence of economists in public policy debates and draws some methodological conclusions. Article in Journal/Newspaper Iceland Edward Elgar Publishing European Journal of Economics and Economic Policies: Intervention 13 3 323 338 |
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Edward Elgar Publishing |
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credwardepubl |
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description |
In 2008, the three main banks in Iceland collapsed. There is strong evidence that the banks would have become insolvent even without the subprime crisis. Yet there was a marked difference in opinion at the time about the viability of the Icelandic banks. A clean bill of health was given by the commissioned reports of Mishkin in 2007 and Portes in 2008, just prior to the collapse, whereas severe reservations about the Icelandic financial system were expressed by Wade, inter alios . These contrasting views were widely debated and may well have influenced both potential and actual foreign depositors in the banks. This paper analyses the disparate arguments put forward and contrasts it with the actual outcome. It considers the influence of economists in public policy debates and draws some methodological conclusions. |
format |
Article in Journal/Newspaper |
author |
McCombie, John S.L. Spreafico, Marta R.M. |
spellingShingle |
McCombie, John S.L. Spreafico, Marta R.M. Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
author_facet |
McCombie, John S.L. Spreafico, Marta R.M. |
author_sort |
McCombie, John S.L. |
title |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_short |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_full |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_fullStr |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_full_unstemmed |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_sort |
could the icelandic banking collapse of 2008 have been prevented? the role of economists prior to the crisis |
publisher |
Edward Elgar Publishing |
publishDate |
2016 |
url |
http://dx.doi.org/10.4337/ejeep.2016.03.06 https://www.elgaronline.com/view/journals/ejeep/13/3/article-p323.xml https://www.elgaronline.com/downloadpdf/journals/ejeep/13/3/article-p323.xml |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
European Journal of Economics and Economic Policies: Intervention volume 13, issue 3, page 323-338 ISSN 2052-7764 2052-7772 |
op_rights |
https://creativecommons.org/licenses/by/4.0/ |
op_doi |
https://doi.org/10.4337/ejeep.2016.03.06 |
container_title |
European Journal of Economics and Economic Policies: Intervention |
container_volume |
13 |
container_issue |
3 |
container_start_page |
323 |
op_container_end_page |
338 |
_version_ |
1801378070813212672 |