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. But as a microstate, Iceland is not able to create sufficient credibility for such a regime, which leaves a monetary union …
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By 2008, the Icelandic banking system had become so large and heavily exposed to foreign liabilities that the Central Bank of Iceland (CBI) lacked sufficient foreign reserves to serve as a credible lender of last resort. During the first quarter of 2008, the CBI, in an effort to bolster...
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