Small open economies in the vast oceanof global high finance
Iceland has a long history of violent cycles of economic exuberance and hardship, of which therecent financial tsunami is only the latest example. We show that this boom-bust pattern isdriven to an important extent by low-frequency co-movement of various financial variables; i.e., acommon “financial...
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ftrepec:oai:RePEc:ice:wpaper:wp73 2024-04-14T08:13:31+00:00 Small open economies in the vast oceanof global high finance Bjarni G. Einarsson Kristófer Gunnlaugsson Thorvardur Tjörvi Ólafsson Thórarinn G. Pétursson http://www.cb.is/library/Skraarsafn---EN/Working-Papers/wp.73_161121.pdf unknown http://www.cb.is/library/Skraarsafn---EN/Working-Papers/wp.73_161121.pdf preprint ftrepec 2024-03-19T10:36:34Z Iceland has a long history of violent cycles of economic exuberance and hardship, of which therecent financial tsunami is only the latest example. We show that this boom-bust pattern isdriven to an important extent by low-frequency co-movement of various financial variables; i.e., acommon “financial cycle”. This cycle is much longer than the typical business cycle, with significantdifferences in economic performance over its different phases. Indeed, almost all of the cycle’s peakscoincide with some type of financial crisis. We find that Iceland is no island in the vast ocean ofglobal high finance, as we uncover strikingly strong spillovers from fluctuations in global financialconditions. Report Iceland RePEc (Research Papers in Economics) |
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Iceland has a long history of violent cycles of economic exuberance and hardship, of which therecent financial tsunami is only the latest example. We show that this boom-bust pattern isdriven to an important extent by low-frequency co-movement of various financial variables; i.e., acommon “financial cycle”. This cycle is much longer than the typical business cycle, with significantdifferences in economic performance over its different phases. Indeed, almost all of the cycle’s peakscoincide with some type of financial crisis. We find that Iceland is no island in the vast ocean ofglobal high finance, as we uncover strikingly strong spillovers from fluctuations in global financialconditions. |
format |
Report |
author |
Bjarni G. Einarsson Kristófer Gunnlaugsson Thorvardur Tjörvi Ólafsson Thórarinn G. Pétursson |
spellingShingle |
Bjarni G. Einarsson Kristófer Gunnlaugsson Thorvardur Tjörvi Ólafsson Thórarinn G. Pétursson Small open economies in the vast oceanof global high finance |
author_facet |
Bjarni G. Einarsson Kristófer Gunnlaugsson Thorvardur Tjörvi Ólafsson Thórarinn G. Pétursson |
author_sort |
Bjarni G. Einarsson |
title |
Small open economies in the vast oceanof global high finance |
title_short |
Small open economies in the vast oceanof global high finance |
title_full |
Small open economies in the vast oceanof global high finance |
title_fullStr |
Small open economies in the vast oceanof global high finance |
title_full_unstemmed |
Small open economies in the vast oceanof global high finance |
title_sort |
small open economies in the vast oceanof global high finance |
url |
http://www.cb.is/library/Skraarsafn---EN/Working-Papers/wp.73_161121.pdf |
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Iceland |
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Iceland |
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http://www.cb.is/library/Skraarsafn---EN/Working-Papers/wp.73_161121.pdf |
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