We examine Iceland's capital controls, which were imposed in October 2008 in order to prevent massive capital flight … following a premature liberalisation of capital outflows. The case of Iceland illustrates the difficulty of resolving large …

banks to public accounts as a consequence of implicit or explicit bailout guarantees to distressed banking systems. This …

Iceland's capital controls were imposed in October 2008 in order to prevent massive capital flight and a complete … the state or tied up in Iceland. An attempt at resolving so-called ‘offshore kronas' – the remains of the carry trade into … Iceland in the years before the 2008 crisis – failed resulting in a dispute with international investors. We model the …