What the Icelandic collapse taught us

As the current financial crisis rumbles on and its deleterious effect on growth and unemployment becomes painfully evident, many observers have concluded that the decision to let Lehman Brothers go under on 15 September 2008 was a grave mistake. Yet, the decision by various participants in the international financial system to starve Iceland of funding in the immediate aftermath of the Lehman collapse should be regarded as a mistake of similar magnitude.

In this brutal aftermath, almost all the

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: