 Ireland and Iceland in Crisis D: Similarities and DifferencesAndrew Metrick
Journal of Financial Crises, 2019, vol. 1, issue 3, 44-56 Abstract: On September 29, 2008--two weeks after the collapse of Lehman Brothers--the government of Ireland took the bold step of guaranteeing almost all liabilities of the country's major banks. The total amount guaranteed by the government was more than double Ireland's gross domestic product, but none of the banks were immediately nationalized. The Icelandic banking system also collapsed in 2008, just one week after the Irish government issued its comprehensive guarantee. In contrast to the Irish response, the Icelandic government did not guarantee all bank debt. Instead, the Icelandic government controversially split each of the three major banks into a new bank that was solvent and held all domestic assets and deposits, and an old bank that retained everything else and was placed into bankruptcy. Given the different responses of the Irish and Icelandic governments to the crisis and the different economic adjustment options afforded by the currency regimes of each country, economists have looked at Ireland and Iceland to study possible responses to other financial crises. Keywords: Ireland; Iceland; Financial Crisis; 2012; 2008; ECB; IMF; housing bubble; currency areas; European Union; FME; Global Financial Crisis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ysm:ypfsfc:1344 Access Statistics for this article More articles in Journal of Financial Crises from Yale Program on Financial Stability (YPFS) Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.