Iceland has developed an oversized banking system - with assets valued at 8 times its GDP - which has effectively … exposed to the current crisis. The lender of last resort in Iceland would not be able to save even one of the large domestic … foreign assets as a cushion (Switzerland). By contrast, Iceland's extremely high net foreign debt ratio adds to the …

Iceland was the first developed economy to fall into crisis in 2008, with the collapse of its banking sector, currency … value, and economy. The collapse threw Iceland into a political crisis and provoked a serious international dispute between … Iceland and Britain and the Netherlands over responsibility for the failed banks. Prior to 2008 Iceland had been treated as …

, speculative bubbles and post-bubble secular stagnation. To prevent a similar scenario for China capital controls, a tighter …