Capital Controls and the Icelandic Banking Collapse: an Assessment
This is the author accepted manuscript. The final version is available from Palgrave Macmillan via https://doi.org/10.1007/978-3-319-41219-1_6 : This paper reassesses the causes and consequences of the Icelandic banking collapse of 2008. It examines the reasons behind the rapid growth of the recentl...
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ftdatacite:10.17863/cam.4535 2023-05-15T16:50:15+02:00 Capital Controls and the Icelandic Banking Collapse: an Assessment McCombie, JSL Spreafico, MRM 2016 https://dx.doi.org/10.17863/cam.4535 https://www.repository.cam.ac.uk/handle/1810/260303 en eng Apollo - University of Cambridge Repository All Rights Reserved https://www.rioxx.net/licenses/all-rights-reserved/ capital controls Icelandic banking crisis IMF Book chapter Chapter Text chapter 2016 ftdatacite https://doi.org/10.17863/cam.4535 2022-02-08T15:18:46Z This is the author accepted manuscript. The final version is available from Palgrave Macmillan via https://doi.org/10.1007/978-3-319-41219-1_6 : This paper reassesses the causes and consequences of the Icelandic banking collapse of 2008. It examines the reasons behind the rapid growth of the recently privatized banks over the subsequent few years, the lack of prudential regulation and the high risk loan strategy of the banks. These, together with the inevitable failure of the Central Bank of Iceland to act as a lender of last resort of foreign currency, made the collapse of the financial system almost inevitable. The IMF was called in and a notable aspect of its rescue package was the imposition of capital controls. This can be seen as the culmination of a secular change of the IMF’s attitude to the regulation of cross-border financial flows. The paper presents an assessment of how effective this strategy has been. It concludes with a more general discussion of the political economy of capital controls. Text Iceland DataCite Metadata Store (German National Library of Science and Technology) |
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DataCite Metadata Store (German National Library of Science and Technology) |
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English |
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capital controls Icelandic banking crisis IMF |
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capital controls Icelandic banking crisis IMF McCombie, JSL Spreafico, MRM Capital Controls and the Icelandic Banking Collapse: an Assessment |
topic_facet |
capital controls Icelandic banking crisis IMF |
description |
This is the author accepted manuscript. The final version is available from Palgrave Macmillan via https://doi.org/10.1007/978-3-319-41219-1_6 : This paper reassesses the causes and consequences of the Icelandic banking collapse of 2008. It examines the reasons behind the rapid growth of the recently privatized banks over the subsequent few years, the lack of prudential regulation and the high risk loan strategy of the banks. These, together with the inevitable failure of the Central Bank of Iceland to act as a lender of last resort of foreign currency, made the collapse of the financial system almost inevitable. The IMF was called in and a notable aspect of its rescue package was the imposition of capital controls. This can be seen as the culmination of a secular change of the IMF’s attitude to the regulation of cross-border financial flows. The paper presents an assessment of how effective this strategy has been. It concludes with a more general discussion of the political economy of capital controls. |
format |
Text |
author |
McCombie, JSL Spreafico, MRM |
author_facet |
McCombie, JSL Spreafico, MRM |
author_sort |
McCombie, JSL |
title |
Capital Controls and the Icelandic Banking Collapse: an Assessment |
title_short |
Capital Controls and the Icelandic Banking Collapse: an Assessment |
title_full |
Capital Controls and the Icelandic Banking Collapse: an Assessment |
title_fullStr |
Capital Controls and the Icelandic Banking Collapse: an Assessment |
title_full_unstemmed |
Capital Controls and the Icelandic Banking Collapse: an Assessment |
title_sort |
capital controls and the icelandic banking collapse: an assessment |
publisher |
Apollo - University of Cambridge Repository |
publishDate |
2016 |
url |
https://dx.doi.org/10.17863/cam.4535 https://www.repository.cam.ac.uk/handle/1810/260303 |
genre |
Iceland |
genre_facet |
Iceland |
op_rights |
All Rights Reserved https://www.rioxx.net/licenses/all-rights-reserved/ |
op_doi |
https://doi.org/10.17863/cam.4535 |
_version_ |
1766040418136358912 |