Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis
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 commi...
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Cheltenham: Edward Elgar Publishing
2016
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Online Access: | http://hdl.handle.net/10419/277369 https://doi.org/10.4337/ejeep.2016.03.06 |
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ftzbwkiel:oai:econstor.eu:10419/277369 2024-01-28T10:06:42+01:00 Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis McCombie, John S.L. Spreafico, Marta R.M. 2016 http://hdl.handle.net/10419/277369 https://doi.org/10.4337/ejeep.2016.03.06 eng eng Cheltenham: Edward Elgar Publishing Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ISSN: 2052-7772 Volume: 13 Year: 2016 Issue: 3 Pages: 323-338 doi:10.4337/ejeep.2016.03.06 http://hdl.handle.net/10419/277369 RePEc:elg:ejeepi:v:13:y:2016:i:3:p323-338 http://www.econstor.eu/dspace/Nutzungsbedingungen https://creativecommons.org/licenses/by/4.0/ ddc:330 A11 E6 G00 2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission doc-type:article 2016 ftzbwkiel https://doi.org/10.4337/ejeep.2016.03.06 2024-01-01T00:44:10Z 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, inter alios. 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. Article in Journal/Newspaper Iceland EconStor (German National Library of Economics, ZBW) European Journal of Economics and Economic Policies: Intervention 13 3 323 338 |
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Open Polar |
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EconStor (German National Library of Economics, ZBW) |
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ftzbwkiel |
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English |
topic |
ddc:330 A11 E6 G00 2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission |
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ddc:330 A11 E6 G00 2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission McCombie, John S.L. Spreafico, Marta R.M. Could the Icelandic banking collapse of 2008 have been prevented? The role of economists prior to the crisis |
topic_facet |
ddc:330 A11 E6 G00 2008 Icelandic banking crisis financial regulation rating agencies role of economists Special Investigation Commission |
description |
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, inter alios. 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. |
format |
Article in Journal/Newspaper |
author |
McCombie, John S.L. Spreafico, Marta R.M. |
author_facet |
McCombie, John S.L. Spreafico, Marta R.M. |
author_sort |
McCombie, John S.L. |
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 |
Cheltenham: Edward Elgar Publishing |
publishDate |
2016 |
url |
http://hdl.handle.net/10419/277369 https://doi.org/10.4337/ejeep.2016.03.06 |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ISSN: 2052-7772 Volume: 13 Year: 2016 Issue: 3 Pages: 323-338 doi:10.4337/ejeep.2016.03.06 http://hdl.handle.net/10419/277369 RePEc:elg:ejeepi:v:13:y:2016:i:3:p323-338 |
op_rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen https://creativecommons.org/licenses/by/4.0/ |
op_doi |
https://doi.org/10.4337/ejeep.2016.03.06 |
container_title |
European Journal of Economics and Economic Policies: Intervention |
container_volume |
13 |
container_issue |
3 |
container_start_page |
323 |
op_container_end_page |
338 |
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1789333763856007168 |