Cause of the Highs and Lows of Iceland

Cause of the Highs and Lows of Iceland

In 2008, Iceland became the first victim of the financial crisis, which sank the country into one of the lowest economic depressions ever witnessed. The banking system crumbled entirely in just a few days, with banks like Landsbankinn being nationalized. The bank that had been trading in the Iceland stock exchange went silent, and the nationalization represents the deep wounds that the 2008 financial crash left behind in the Iceland financial market. KAUPING is another bank that came under government control as a result of the crisis (McGrow-Hill, 2014, 0:35). The crisis led to a decline in the country’s GDP from 21.515M in 2007 to as low as 13.165M dollars (The World Bank, n.d.). In hindsight, the 2007-2008 financial crisis was a major cause of the financial market lows in Iceland. Our assignment writing help is at affordable prices to students of all academic levels and disciplines.

However, on the high side, Iceland enjoys a pool of professionals and good governance from leaders like Steingrimur Sigfusson, the then Minister of Finance. The minister implemented both Keynesian and classical economics to salvage the then dwindling financial market (McGrow-Hill, 2014, 2:32). By choosing a mix of policies to determine what expenditures to cut and revenues to regulate provided a mixture of policies that steered the country into the financial recovery and subsequently resulted in economic highs.

Experienced and well-trained human capital in Iceland is second to nowhere. As explained by Simon Johnson, an MIT professor, Iceland has vast skilled labor, which, if given the right conditions, can reshape the economy of the country (McGrow-Hill, 2014, 5: 20). The professor believes that the Iceland government can build a successful model based on her human capital and redefine its success story. In 2009, the country’s GDP was 13.165M USD, whereas, in 2019, the GDP was 24.188 M USD (The World Bank, n.d.). The exponential growth is attributed to the country’s human capital.

However, brain drain is to blame for some of the lows in the country. As witnessed in the video, the youths are willing to exit the country in search of greener pasture (McGrow-Hill, 2014, 4: 05). Thus, brain drain is real and responsible for some of Iceland’s lows.

References

McGrow-Hill Irwin [Video]. (2014). Viddler. shttps://www.viddler.com/embed/35a619e3/?f=1&autoplay=0&player=full&disablebranding=0

The World Bank. (n.d.). worldbank. https://data.worldbank.org/country/IS

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

Cause of the Highs and Lows of Iceland

This country (Iceland) has been through such turmoil and is now on the rise. What are some of the factors discussed (in the video or in your additional research) that illustrate the causes of both the lows and the highs?

Please be sure to watch the Video before responding.

https://www.viddler.com/embed/35a619e3/?f=1&autoplay=0&player=full&disablebranding=0