Iceland was among the first countries hit by the financial tsunami of the global financial crisis. With assets 10 times the size of GDP and relying on aggressive foreign borrowing, Iceland’s banking system was extraordinarily large relative to the economy. When the Icelandic foreign exchange market and banks collapsed, the króna threatened to spiral out of control, dealing a blow to firms and households heavily indebted with foreign currency and inflation-indexed loans. Continue reading from the International Monetary Fund
Iceland: Financial Boom or Bust (Britannica)
Lessons from the Icelandic Financial Crisis (Center for Financial Stability)
Meltdown Iceland: Lessons on the World Financial Crisis from a Small Bankrupt Island (The Economist)
How Iceland Dealt with a Volcanic Financial Meltdown (Wharton/University of Pennsylvania)
Iceland Makes Strong Recovery from the 2008 Financial Crisis (International Monetary Fund)
Failing Banks, Winning Economy: The Truth about Iceland's Recovery (World Finance)
