The Rise and Fall of the Icelandic Economy

Iceland became the first developed country in 30 years to request help from the IMF in 2009. While the depths of its recent recession are well studied, the causes of its origin are still misunderstood. This paper looks at two factors: (1) the blanket guarantees provided to the Icelandic banking syst...

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Bibliographic Details
Main Author: David Howden
Other Authors: The Pennsylvania State University CiteSeerX Archives
Format: Text
Language:English
Subjects:
Key Words
Iceland
Economic crisis
Inflation targeting
Credit
Deposit insurance
Online Access:http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.4822
http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf
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spelling ftciteseerx:oai:CiteSeerX.psu:10.1.1.687.4822 2023-05-15T16:43:37+02:00 The Rise and Fall of the Icelandic Economy David Howden The Pennsylvania State University CiteSeerX Archives application/pdf http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.4822 http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf en eng http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.4822 http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf Metadata may be used without restrictions as long as the oai identifier remains attached to it. http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf Key Words Iceland Economic crisis Inflation targeting Credit Deposit insurance text ftciteseerx 2016-01-08T18:11:52Z Iceland became the first developed country in 30 years to request help from the IMF in 2009. While the depths of its recent recession are well studied, the causes of its origin are still misunderstood. This paper looks at two factors: (1) the blanket guarantees provided to the Icelandic banking system by various public agencies, and which fostered an environment of excessive risk taking; (2) a faulty inflation-targeting framework by the Central Bank of Iceland, which resulted in a credit binge engulfing the small island. While the first factor explains why Iceland´s banking sector grew as large as it did, the second accounts for the magnitude of the imbalances in both the real and financial sectors.1 Text Iceland Unknown
institution Open Polar
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op_collection_id ftciteseerx
language English
topic Key Words
Iceland
Economic crisis
Inflation targeting
Credit
Deposit insurance
spellingShingle Key Words
Iceland
Economic crisis
Inflation targeting
Credit
Deposit insurance
David Howden
The Rise and Fall of the Icelandic Economy
topic_facet Key Words
Iceland
Economic crisis
Inflation targeting
Credit
Deposit insurance
description Iceland became the first developed country in 30 years to request help from the IMF in 2009. While the depths of its recent recession are well studied, the causes of its origin are still misunderstood. This paper looks at two factors: (1) the blanket guarantees provided to the Icelandic banking system by various public agencies, and which fostered an environment of excessive risk taking; (2) a faulty inflation-targeting framework by the Central Bank of Iceland, which resulted in a credit binge engulfing the small island. While the first factor explains why Iceland´s banking sector grew as large as it did, the second accounts for the magnitude of the imbalances in both the real and financial sectors.1
author2 The Pennsylvania State University CiteSeerX Archives
format Text
author David Howden
author_facet David Howden
author_sort David Howden
title The Rise and Fall of the Icelandic Economy
title_short The Rise and Fall of the Icelandic Economy
title_full The Rise and Fall of the Icelandic Economy
title_fullStr The Rise and Fall of the Icelandic Economy
title_full_unstemmed The Rise and Fall of the Icelandic Economy
title_sort rise and fall of the icelandic economy
url http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.4822
http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf
genre Iceland
genre_facet Iceland
op_source http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf
op_relation http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.687.4822
http://www.jspes.org/pdfs/winter2013/JSPES38-4Howden-Iceland.pdf
op_rights Metadata may be used without restrictions as long as the oai identifier remains attached to it.
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