The Icelandic and Irish Banking Crises: Alternative Paths to a Credit-Induced Collapse

摘要

Although it is conceptually easy to aggregate crisis-stricken countries into a homogenous group that experienced artificially low interest rates and excess credit creation during the recent financial crisis, understanding some key institutional differences allows for a more fruitful analysis. This paper has used the cases of Iceland and Ireland to illustrate this point. Although both countries experienced a similar ABC-type boom from typical monetary causes, the specific factors propagating these monetary effects were quite distinct in each.