Icelands Meltdown: The rise and fall of international banking in the North Atlantic

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 abroa...

ver descrição completa

Detalhes bibliográficos
Autores: Wade, Robert, Sigurgeirsdottir, Silla
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:2011
País:Brasil
Recursos:EDITORA 34
Repositório:Revista de Economia Política
Idioma:inglês
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/379
Acesso em linha:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/379
Access Level:Acceso aberto
Palavra-chave:Islândia
crise financeira
privatizações
crise bancária
Iceland
financial crisis
privatization
banking crisis
Descrição
Resumo: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. JEL Classification: E5.