Financial Markets

Iceland has learnt the hard way to play in its league or have a “big daddy”  . . . for details, see the recently released CEPR paper :

The Icelandic banking crisis and what to do about it:

The lender of last resort theory of optimal currency areas

 Willem H. Buiter and Anne SIbert 

LSE, NBER and CEPR; Birkbeck, University of London and CEPR