Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis
<jats:p>In 2008, the three main banks in Iceland collapsed. There is strong evidence that the banks would have become insolvent even without the subprime crisis. Yet there was a marked difference in opinion at the time about the viability of the Icelandic banks. A clean bill of health was give...
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ftunivcam:oai:www.repository.cam.ac.uk:1810/256288 2024-02-04T10:01:31+01:00 Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis McCombie, John SL Spreafico, Marta RM 2016-12 application/pdf https://www.repository.cam.ac.uk/handle/1810/256288 https://doi.org/10.17863/CAM.229 English eng eng Edward Elgar Publishing http://dx.doi.org/10.4337/ejeep.2016.03.06 European Journal of Economics and Economic Policies: Intervention https://www.repository.cam.ac.uk/handle/1810/256288 doi:10.17863/CAM.229 2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission Article 2016 ftunivcam https://doi.org/10.17863/CAM.229 2024-01-11T23:30:59Z <jats:p>In 2008, the three main banks in Iceland collapsed. There is strong evidence that the banks would have become insolvent even without the subprime crisis. Yet there was a marked difference in opinion at the time about the viability of the Icelandic banks. A clean bill of health was given by the commissioned reports of Mishkin in 2007 and Portes in 2008, just prior to the collapse, whereas severe reservations about the Icelandic financial system were expressed by Wade, <jats:italic>inter alios</jats:italic>. These contrasting views were widely debated and may well have influenced both potential and actual foreign depositors in the banks. This paper analyses the disparate arguments put forward and contrasts it with the actual outcome. It considers the influence of economists in public policy debates and draws some methodological conclusions.</jats:p> This is the author accepted manuscript. The final version is available from Edward Elgar Publishing via https://doi.org/10.4337/ejeep.2016.03.06 Article in Journal/Newspaper Iceland Apollo - University of Cambridge Repository |
institution |
Open Polar |
collection |
Apollo - University of Cambridge Repository |
op_collection_id |
ftunivcam |
language |
English |
topic |
2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission |
spellingShingle |
2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission McCombie, John SL Spreafico, Marta RM Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
topic_facet |
2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission |
description |
<jats:p>In 2008, the three main banks in Iceland collapsed. There is strong evidence that the banks would have become insolvent even without the subprime crisis. Yet there was a marked difference in opinion at the time about the viability of the Icelandic banks. A clean bill of health was given by the commissioned reports of Mishkin in 2007 and Portes in 2008, just prior to the collapse, whereas severe reservations about the Icelandic financial system were expressed by Wade, <jats:italic>inter alios</jats:italic>. These contrasting views were widely debated and may well have influenced both potential and actual foreign depositors in the banks. This paper analyses the disparate arguments put forward and contrasts it with the actual outcome. It considers the influence of economists in public policy debates and draws some methodological conclusions.</jats:p> This is the author accepted manuscript. The final version is available from Edward Elgar Publishing via https://doi.org/10.4337/ejeep.2016.03.06 |
format |
Article in Journal/Newspaper |
author |
McCombie, John SL Spreafico, Marta RM |
author_facet |
McCombie, John SL Spreafico, Marta RM |
author_sort |
McCombie, John SL |
title |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_short |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_full |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_fullStr |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_full_unstemmed |
Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
title_sort |
could the icelandic banking collapse of 2008 have been prevented? the role of economists prior to the crisis |
publisher |
Edward Elgar Publishing |
publishDate |
2016 |
url |
https://www.repository.cam.ac.uk/handle/1810/256288 https://doi.org/10.17863/CAM.229 |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
https://www.repository.cam.ac.uk/handle/1810/256288 doi:10.17863/CAM.229 |
op_doi |
https://doi.org/10.17863/CAM.229 |
_version_ |
1789967466360733696 |