Friðrik Már Baldursson, Richard Portes, Monday, January 6, 2014 - 00:00

In 2008, Icelandic banks were too big to fail and too big to save. The government’s rescue attempts had devastating systemic consequences in Iceland since – as it turned out – they were too big for the state to rescue. This column discusses research that shows how this was a classic case of banks gambling for resurrection.

CEPR Policy Research