The Economy of Iceland: How Did Iceland Recover?

Iceland's Economy had a banking debt ten times larger than its GDP.
Iceland was that one Economy which went left when everybody else went right. Whilst most thought the banks were too big to fail, Iceland thought they were too big to save.
It let its largest banks go bankrupt and threw dozens of bankers in jail.
And yet despite its unusual approach, its Economy recovered. Going on to enjoy a decade of unbroken economic growth and high standard of living.

But why did an island just outside the arctic circle have a financial crisis?
What strategies did it deploy to rack up such monumental debts?
How did it recover?
And does its future rely on impressive tourist growth and crypto currencies?

#Iceland #IcelandicEconomy #Economics

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[yonilevy]

Iceland went from fishing to banking and survived. We all should learn from them.

[luigicolella]

I still don't understand why you don't have more subscribers. Your videos are so good!

[falkjanen]

"And then those Viking explorers decedents discovered an unlimited money fountain... but it was cursed!" Sometimes reality beats myth.😂

[menghokhim]

Can you do Cambodia 🇰🇭 please? Your work is really good!

[kristian.or.levites]

Facts is that, the poverty rate in Iceland is one of the best in the world. ... The total poverty rate ratio in Iceland is 0.065. Many of the other Nordic countries, such as Norway and Finland, also post very impressive poverty rates. Iceland's unemployment rate, another key economic indicator, is also very low.

[jon]

You made a really good point about Iceland’s currency. I was very surprised that they are free floating and not pegged. I am also suprised Denmark follows a pegged system while other Nordic neighbors float their national currencies. Also prior to the euro crisis I didn’t know why Switzerland pegged their francs to the euro. Yes Switzerland has the largest reserves of foreign currencies and can afford to peg however the Swiss franc was already regarded as a hard currency so a peg to the euro was unnecessary.

[human.]

The real reason is because Mc'donalds left iceland in 2009

[kaocakeman]

So, Iceland's banking sector failed because they did it DIY instead of getting foreign experts? And just where would these foreign experts who would manage things better come from? The US banking sector which played a large part in causing the 2008 Great Financial Crisis? The over-leveraged European banking sector which needed to be bailed out during the European Debt Crisis? I'm not convinced it would have made a difference whether Iceland started banking themselves or invited foreign bankers, they would have made the same risky bets and burned themselves in the process. The one good thing Iceland did that the US and Europe failed to do was let the banks taste the result of their own hubris.

That aside, I still like the rest of your presentation, so have a like.

[jakubwojcik]

last time I thought about recommending you to create a video about Iceland but I left my idea...

You read my thoughts, did it without my comment 😅

[amienhamdaoui]

What a quality video ! Could you make an video about the economy of Mexico? How is it possible that Mexico is not as rich and developed as the US, while having the most FTA and the lowest taxation of the OECD.

Would be very interesting

[TA-eoww]

GOOD FOR YOU ICELAND!!!! MAY YOU ICELANTICS HAVE MANY MORE

[maxxbenavente]

Could you make a video talking about how Europe developed so good and reached a level of welfare that is admired all around the world?

[priyansubhagabati]

I feel like you can catch up with economics explained in like less than 1 year 😊

[Manos_P_]

Congratulations to Iceland who managed well their banking system! Not as my country (Cyprus, in case you wander). Could you make a hypothetical video comparing what would have happened if Greece never left Drachma? And what are the consequences if Greece leave now? I think it would be a fascinating story!

P.S. you have just earned a subscriber, a well made video :)

[squiz]

Hey I really enjoy your videos, and i've got an idea . You should do "The Economy of Romania". I would love that video ;)

[husky]

Greece: Write that down! WRITE THAT DOWN!

[리주민]

8:45
Actually my question was why are loans inflation indexed but not wages and salaries? Fairs fair.

[Simpaulme]

'the importance of this should not be underestimated'
OR
'the importance of this cannot be overstated'

Around 3:35

[pocki]

In a perfect world this would be the way foward for a country like Lebanon.

[prashr]

Change ur name to Alteconomics or similar which has economics.

Then the algorithm could support you..for more viewers