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Financial Stability in Iceland

In: Preludes to the Icelandic Financial Crisis

Author

Listed:
  • Frederic S. Mishkin
  • Tryggvi T. Herbertsson

Abstract

There has been good and bad news for the Icelandic economy. The good news is that it is receiving a lot of attention. The bad news is that it is receiving a lot of attention. Recent volatility in Iceland’s asset markets have raised concerns about the fragility of Iceland’s economy. In this respect many have looked to the country’s large current account deficit. This study provides a framework for evaluating financial fragility by examining the fundamentals of Iceland’s economy to see whether they suggest that the country could go down the traditional routes to financial instability.

Suggested Citation

  • Frederic S. Mishkin & Tryggvi T. Herbertsson, 2011. "Financial Stability in Iceland," Palgrave Macmillan Books, in: Robert Z. Aliber & Gylfi Zoega (ed.), Preludes to the Icelandic Financial Crisis, chapter 9, pages 107-159, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-30714-8_9
    DOI: 10.1057/9780230307148_9
    as

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