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    The collapse of Iceland's banks: the predictable end of a non-viable business model

    Buiter, W. and Sibert, Anne (2011) The collapse of Iceland's banks: the predictable end of a non-viable business model. In: Aliber, R.Z. and Zoega, Gylfi (eds.) Preludes to the Icelandic Financial Crisis. Basingstoke, UK: Palgrave Macmillan, pp. 241-275. ISBN 9780230276925.

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    Abstract

    Book synopsis: Iceland became one of the symbols of the fourth wave of the financial crisis, since the end of the first decade of the twenty-first century. Between 2003 and 2008, the market value of the stock of Iceland's biggest companies increased by 700 per cent, and the assets of its three banks multiplied eightfold to eight times the country's GDP. When the bubble burst, it helped bring the world economy to its knees. This volume brings together several papers written by professional economists before the crash, warning of the dangers of the bubble economy that was being created. The papers discuss the imbalances created by an inflow of foreign capital, the hazards of a rapidly expanding banking system, and the perils that all banks face in a bubble economy. The chapters also provide a case study of the economics profession before the collapse of the international financial system. What did and didn't they see coming, and why? An introduction and conclusion contextualize the articles and draw out some important lessons. This book is essential reading for all interested in macroeconomics, economic policy and international finance, as well as anyone seeking to grasp the causes of the deepest global recession since the Great Depression.

    Metadata

    Item Type: Book Section
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Depositing User: Administrator
    Date Deposited: 03 Jun 2013 07:28
    Last Modified: 03 Jun 2013 07:28
    URI: http://eprints.bbk.ac.uk/id/eprint/7177

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