Two thorns of experience: financialisation in Iceland and Ireland
We explain the 2008 crisis in Iceland and Ireland with an emphasis on the role financialisation played in destabilising these countries’ economies. The two small open economies share similarities in that both countries had capital inflows before the crisis, ending with a sudden stop. However, the me...
Published in: | International Review of Applied Economics |
---|---|
Main Authors: | , , , |
Format: | Article in Journal/Newspaper |
Language: | unknown |
Published: |
Taylor and Francis
2016
|
Subjects: | |
Online Access: | https://eprints.bbk.ac.uk/id/eprint/15970/ https://doi.org/10.1080/02692171.2016.1208739 |
id |
ftbirkbeckcoll:oai:eprints.bbk.ac.uk.oai2:15970 |
---|---|
record_format |
openpolar |
spelling |
ftbirkbeckcoll:oai:eprints.bbk.ac.uk.oai2:15970 2023-05-15T16:46:54+02:00 Two thorns of experience: financialisation in Iceland and Ireland Raza, H. Gudmundsson, B. Zoega, Gylfi Kinsella, S. 2016 https://eprints.bbk.ac.uk/id/eprint/15970/ https://doi.org/10.1080/02692171.2016.1208739 unknown Taylor and Francis Raza, H. and Gudmundsson, B. and Zoega, Gylfi and Kinsella, S. (2016) Two thorns of experience: financialisation in Iceland and Ireland. International Review of Applied Economics 30 (6), pp. 771-789. ISSN 0269-2171. Economics Mathematics and Statistics Article PeerReviewed 2016 ftbirkbeckcoll https://doi.org/10.1080/02692171.2016.1208739 2022-01-09T08:58:38Z We explain the 2008 crisis in Iceland and Ireland with an emphasis on the role financialisation played in destabilising these countries’ economies. The two small open economies share similarities in that both countries had capital inflows before the crisis, ending with a sudden stop. However, the mechanisms of the crisis, which induced the capital flows, the factors that influenced them and their effects on the real economy differed due to differences in currency regimes and the response to the crises. We investigate the link between financialisation and the transmission channels of financialisation on the macroeconomy, using ARDL methodology. Finally, we suggest policy prescriptions to limit the scale and scope of similar crises in the future while highlighting the institutional differences between the two economies. Article in Journal/Newspaper Iceland BIROn - Birkbeck Institutional Research Online (Birkbeck University of London) International Review of Applied Economics 30 6 771 789 |
institution |
Open Polar |
collection |
BIROn - Birkbeck Institutional Research Online (Birkbeck University of London) |
op_collection_id |
ftbirkbeckcoll |
language |
unknown |
topic |
Economics Mathematics and Statistics |
spellingShingle |
Economics Mathematics and Statistics Raza, H. Gudmundsson, B. Zoega, Gylfi Kinsella, S. Two thorns of experience: financialisation in Iceland and Ireland |
topic_facet |
Economics Mathematics and Statistics |
description |
We explain the 2008 crisis in Iceland and Ireland with an emphasis on the role financialisation played in destabilising these countries’ economies. The two small open economies share similarities in that both countries had capital inflows before the crisis, ending with a sudden stop. However, the mechanisms of the crisis, which induced the capital flows, the factors that influenced them and their effects on the real economy differed due to differences in currency regimes and the response to the crises. We investigate the link between financialisation and the transmission channels of financialisation on the macroeconomy, using ARDL methodology. Finally, we suggest policy prescriptions to limit the scale and scope of similar crises in the future while highlighting the institutional differences between the two economies. |
format |
Article in Journal/Newspaper |
author |
Raza, H. Gudmundsson, B. Zoega, Gylfi Kinsella, S. |
author_facet |
Raza, H. Gudmundsson, B. Zoega, Gylfi Kinsella, S. |
author_sort |
Raza, H. |
title |
Two thorns of experience: financialisation in Iceland and Ireland |
title_short |
Two thorns of experience: financialisation in Iceland and Ireland |
title_full |
Two thorns of experience: financialisation in Iceland and Ireland |
title_fullStr |
Two thorns of experience: financialisation in Iceland and Ireland |
title_full_unstemmed |
Two thorns of experience: financialisation in Iceland and Ireland |
title_sort |
two thorns of experience: financialisation in iceland and ireland |
publisher |
Taylor and Francis |
publishDate |
2016 |
url |
https://eprints.bbk.ac.uk/id/eprint/15970/ https://doi.org/10.1080/02692171.2016.1208739 |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
Raza, H. and Gudmundsson, B. and Zoega, Gylfi and Kinsella, S. (2016) Two thorns of experience: financialisation in Iceland and Ireland. International Review of Applied Economics 30 (6), pp. 771-789. ISSN 0269-2171. |
op_doi |
https://doi.org/10.1080/02692171.2016.1208739 |
container_title |
International Review of Applied Economics |
container_volume |
30 |
container_issue |
6 |
container_start_page |
771 |
op_container_end_page |
789 |
_version_ |
1766037006484242432 |