Six myths and few facts, Recovery of the Icelandic economy post October 2008
The relative success of the Icelandic road to recovery in the wake of the 2008 Financial Crisis has been a source of some myth-making. This paper discusses to which extent Iceland refused to bail out bankers and sheltered the sovereign from financial losses. I also argue that Iceland responded to th...
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| Format: | Article in Journal/Newspaper |
| Language: | unknown |
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| Online Access: | http://nopecjournal.org/NOPEC_2015_a1.pdf |
| Summary: | The relative success of the Icelandic road to recovery in the wake of the 2008 Financial Crisis has been a source of some myth-making. This paper discusses to which extent Iceland refused to bail out bankers and sheltered the sovereign from financial losses. I also argue that Iceland responded to the crisis by Keynesian expansionary policy rather than austerity. Furthermore, I argue that the debt-relief program that the government initiated also was a key factor in cushioning the effect of the collapse of the Icelandic financial system. |
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