Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis

When the tales of the Icelandic and Irish crises are told, they are framed as if one country did everything right to exit recession. In this paper I assess their recovery policies and find that the truth lies somewhere in the middle. By allowing its banking system to suffer substantial losses, Icela...

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Bibliographic Details
Main Author: Howden, David
Format: Report
Language:English
Published: 2013
Subjects:
E32 - Business Fluctuations
Cycles
Iceland
Online Access:https://mpra.ub.uni-muenchen.de/79600/
https://mpra.ub.uni-muenchen.de/79600/1/MPRA_paper_79600.pdf
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spelling ftmpra:oai:mpra.ub.uni-muenchen.de:79600 2024-09-15T18:13:38+00:00 Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis Howden, David 2013 application/pdf https://mpra.ub.uni-muenchen.de/79600/ https://mpra.ub.uni-muenchen.de/79600/1/MPRA_paper_79600.pdf en eng https://mpra.ub.uni-muenchen.de/79600/1/MPRA_paper_79600.pdf Howden, David (2013): Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis. Published in: Economic Affairs , Vol. 3, No. 33 (2013): pp. 348-360. E32 - Business Fluctuations Cycles MPRA Paper NonPeerReviewed 2013 ftmpra 2024-07-31T03:25:12Z When the tales of the Icelandic and Irish crises are told, they are framed as if one country did everything right to exit recession. In this paper I assess their recovery policies and find that the truth lies somewhere in the middle. By allowing its banking system to suffer substantial losses, Iceland shielded its citizens from the costly debt overhand apparent in Ireland. Ireland’s commitment to open capital markets and price deflation has allowed trade flows to remain robust, and relative prices to realign to signal sustainable production plans to entrepreneurs. These lessons provide a roadmap for other countries entering similar crises in the future. Report Iceland Munich Personal RePEc Archive (MPRA - Ludwig-Maximilians-University Munich)
institution Open Polar
collection Munich Personal RePEc Archive (MPRA - Ludwig-Maximilians-University Munich)
op_collection_id ftmpra
language English
topic E32 - Business Fluctuations
Cycles
spellingShingle E32 - Business Fluctuations
Cycles
Howden, David
Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis
topic_facet E32 - Business Fluctuations
Cycles
description When the tales of the Icelandic and Irish crises are told, they are framed as if one country did everything right to exit recession. In this paper I assess their recovery policies and find that the truth lies somewhere in the middle. By allowing its banking system to suffer substantial losses, Iceland shielded its citizens from the costly debt overhand apparent in Ireland. Ireland’s commitment to open capital markets and price deflation has allowed trade flows to remain robust, and relative prices to realign to signal sustainable production plans to entrepreneurs. These lessons provide a roadmap for other countries entering similar crises in the future.
format Report
author Howden, David
author_facet Howden, David
author_sort Howden, David
title Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis
title_short Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis
title_full Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis
title_fullStr Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis
title_full_unstemmed Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis
title_sort separating the wheat from the chaff: icelandic and irish policy responses to the banking crisis
publishDate 2013
url https://mpra.ub.uni-muenchen.de/79600/
https://mpra.ub.uni-muenchen.de/79600/1/MPRA_paper_79600.pdf
genre Iceland
genre_facet Iceland
op_relation https://mpra.ub.uni-muenchen.de/79600/1/MPRA_paper_79600.pdf
Howden, David (2013): Separating the Wheat from the Chaff: Icelandic and Irish Policy Responses to the Banking Crisis. Published in: Economic Affairs , Vol. 3, No. 33 (2013): pp. 348-360.
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