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Unformatted text preview: fact that these meetings were opened up to the G-20 countries is a testament to the importance of the emerging economies in the global financial system. Icelands Financial Crisis Iceland was especially hard hit by a financial crisis in 2008. The country had to nationalize three major banks, and it eventually had to get an emergency loan from the International Monetary Fund. Its currencythe Icelandic Krona depreciated severely in 2008 as a result of the crisis. Icelands major problem was that is was overleveragedits external private debts were more than five times its gross domestic product, and Icelands Central Bank did not have enough cash to back its failed banks. Some argue that Iceland became too involved in globalization too quickly. Easy access to loans and a strong currency allowed Icelands firms to expand aggressively. They became overleveraged, and a financial crisis ensued....
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This note was uploaded on 02/05/2011 for the course GEB 3373 taught by Professor Crum during the Spring '10 term at University of Florida.
- Spring '10