You can tune in to today’s IMF conference on Iceland here.

One of the speakers is Jon Danielsson. He has posted two articles on VOXEU, in which he argues that the recovery process in Iceland is far from complete and that the crisis response was not optimal.  The bank-sector article is here; the overview on the IMF programme is here.

7 replies on “Iceland!”

No EU Super-Summit #14 thread yet?? Damned public sector and your cosy lie-ins, you probably haven’t even voted yet…

Simon Johnson talking buckets of sense – Goldman sachs is being subsidised by the US goverment. Banks have much more resources in the States to influence policy in terms of contributions to politicans, best teams of lawyers, abilities to argue points to the last details.
Non- Financial sector needs to regulate financial sector.
Derivitives market is not a market rather a massive government subsidy scheme.

Those who sold default insurance for Irish banks bonds are certainily being subsidised by the Irish government.

An interesting point from Daniellssons article – Iceland had the second lowest investment rate in Europein 2010 after Ireland.. according to the OECD, Iceland had the highest number of restrictions on foreign direct investment among member countries in 2010 ‘
Iceland also had an increased political risk due to its government policy of letting private banks fall on their own swords.
Can anyone explain given these factors how Ireland had a lower investment rate than Ireland in 2010? Also Iceland was able to sell government bonds at a reasonable 5% interest rate last June.
Aren’t these the very reasons that we are being told why we can’t let creditors in bankrupt banks take their losses.

Should say can anyone tell me given these factors how Ireland had a lower investment rate than Iceland in 2010?

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