Iceland's meltdown : the rise and fall of international banking in the North Atlantic
By: WADE, Robert H
.
Contributor(s): SIGURGEIRSDOTTIR, Silla.
Material type: 
ArticlePublisher: São Paulo : Editora 34, Dez. 2011Subject(s): Crise Econômica | Privatização | Estabilidade Econômica | Instituição Financeira | Política Monetária | Sistema Financeiro | Liberalismo | Islândia | EuropaOnline resources: Acesso | Acesso Revista de Economia Política = Brazilian Journal of Political Economy 31, 5, p. 684-698Abstract: This paper shows how rapid privatization and liberalization of Iceland's small local banks around 2000, combined with well-developed crony relations among the elite, enabled a small group of financiers to leverage government-guaranteed deposits into a vast wave of mergers and acquisitions abroad, and redistribute enough of the profits back home to make the economy boom. Negative policy feedback loops were systematically undermined. The incoming left-wing government, with IMF support, has managed to protect the bulk of the population from the worst of the effects
This paper shows how rapid privatization and liberalization of Iceland's small local banks around 2000, combined with well-developed crony relations among the elite, enabled a small group of financiers to leverage government-guaranteed deposits into a vast wave of mergers and acquisitions abroad, and redistribute enough of the profits back home to make the economy boom. Negative policy feedback loops were systematically undermined. The incoming left-wing government, with IMF support, has managed to protect the bulk of the population from the worst of the effects
v. 31, n. 5(125)
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