Product Description
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.
Book Description
A selection of papers written by professional economists before the banking crash in Iceland, and a case study of the blind spots that can prevent even experts from seeing what's over the horizon
About the Author
ROBERT ALIBER is Professor Emeritus at the Booth Graduate School of Business, University of Chicago, USA. His books include The New International Money Game, (Palgrave Macmillan) now in its seventh edition and a book on personal finance, Your Money and Your Life (forthcoming in 2010). He will also be bringing out an updated edition of Charles Kindleberger's Manias, Panics, and Crashes.
GLYFI ZOEGA is Professor of Economics at the University of Iceland. He has published numerous articles in macroeconomics and labour economics, and these have appeared in such journals as the American Economic Review, Brookings Papers on Economic Activity and the Journal of Applied Econometrics.
