Spinning out of control, Iceland in crisis
Within few days in October 2008 some 85% of the Icelandic bank-sector collapsed, as did the Icelandic króna. Many non-financial firms declared bankruptcy or decimated their workforce. Inflation skyrocketed as did unemployment, the other ingredient in the misery index. This paper records how well-int...
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ftrepec:oai:RePEc:noj:journl:v:34:y:2008:p:3 2024-04-14T08:13:38+00:00 Spinning out of control, Iceland in crisis Thorolfur Matthiasson http://www.nopecjournal.org/NOPEC_2008_a03.pdf unknown http://www.nopecjournal.org/NOPEC_2008_a03.pdf article ftrepec 2024-03-19T10:40:50Z Within few days in October 2008 some 85% of the Icelandic bank-sector collapsed, as did the Icelandic króna. Many non-financial firms declared bankruptcy or decimated their workforce. Inflation skyrocketed as did unemployment, the other ingredient in the misery index. This paper records how well-intended policies aimed at making life easier for house-owners, people living in de-populating areas, and taxpayers turned into misfortune. The mixture of lax fiscal policy, tight monetary policy, inflation targeting, and running the smallest floating currency in the world with inadequate foreign reserves proved to be dangerous. Icelandic Bank Crisis 2008, Inflation targeting, Macroeconomic imbalance, Privatization, Overinvestment, Stock Market Collapse, Conflicting Economic Goals. Article in Journal/Newspaper Iceland RePEc (Research Papers in Economics) |
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RePEc (Research Papers in Economics) |
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Within few days in October 2008 some 85% of the Icelandic bank-sector collapsed, as did the Icelandic króna. Many non-financial firms declared bankruptcy or decimated their workforce. Inflation skyrocketed as did unemployment, the other ingredient in the misery index. This paper records how well-intended policies aimed at making life easier for house-owners, people living in de-populating areas, and taxpayers turned into misfortune. The mixture of lax fiscal policy, tight monetary policy, inflation targeting, and running the smallest floating currency in the world with inadequate foreign reserves proved to be dangerous. Icelandic Bank Crisis 2008, Inflation targeting, Macroeconomic imbalance, Privatization, Overinvestment, Stock Market Collapse, Conflicting Economic Goals. |
format |
Article in Journal/Newspaper |
author |
Thorolfur Matthiasson |
spellingShingle |
Thorolfur Matthiasson Spinning out of control, Iceland in crisis |
author_facet |
Thorolfur Matthiasson |
author_sort |
Thorolfur Matthiasson |
title |
Spinning out of control, Iceland in crisis |
title_short |
Spinning out of control, Iceland in crisis |
title_full |
Spinning out of control, Iceland in crisis |
title_fullStr |
Spinning out of control, Iceland in crisis |
title_full_unstemmed |
Spinning out of control, Iceland in crisis |
title_sort |
spinning out of control, iceland in crisis |
url |
http://www.nopecjournal.org/NOPEC_2008_a03.pdf |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
http://www.nopecjournal.org/NOPEC_2008_a03.pdf |
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1796311655149207552 |