The Icelandic and Irish Banking Crises
Alternative Paths to a Credit-Induced Collapse
By David Howden
This article appeared in the Winter 2013/14 issue of The Independent Review.
Central banks set the stage for financial collapse through excessive credit expansion, but a lax monetary policy isnt the only way that policymakers can foster a meltdown. As the recent banking crises in Iceland and Ireland illustrate, a faulty deposit insurance system and a poorly managed accession to the currency union can make matters worse.
David Howden is a MA (Econ.) student at the Universidad Rey Juan Carlos, Madrid, Spain and a past winner of The Sir John M. Templeton Fellowships Essay Contest.
Banking and FinanceBanking Law and RegulationBusiness and EntrepreneurshipEconomic PolicyEconomyEuropeInternational Economics and DevelopmentLaw and Liberty
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