• 00:01    |    
    Initial credits
  • 00:20    |    
    • Media's oversimplification of economic crisis
    • American International Group (AIG)
    • "Easy does it," The Economist
  • 04:37    |    
    Overview of Iceland
    • Geography
    • Population
    • Language
    • Currency
    • Religion
    • Type of government
    • Gross domestic product (GDP)
    • GDP per capita in 2004
  • 08:37.5    |    
    Economic growth
    • History
    • North Atlantic Treaty Organization (NATO)
    • European Free Trade Association (EFTA)
    • Expansion of the Exclusive Economic Zone (EEZ)
    • The Cod Wars
    • European Economic Area (EEA)
    • Market liberalization
    • Economic freedom
  • 17:35.5    |    
    Pillars of prosperity
    • Rule of law
    • Pension fund system
    • Property rights system for fisheries
      • Merchandise exports in 2004
      • Fishing overexploitation in the 1980s
      • The Mystery of Capital, Hernando de Soto
    • Bilateral agreements with other countries
    • Privatization
    • Reduction of government debt
    • Public spending
      • Extensive tax cuts
      • Increased public spending
      • Free market society and social welfare system
  • 30:11.400000000000091    |    
    Icelandic financial crisis
    • Collapse of the banking sector
    • Real estate prices fall
    • A global financial crisis
      • Privatization of banks
      • Monetary policies
      • Government spending
      • Signals from central banks and governments
    • Individual responsibility for debt
      • Government intervention
      • Human error
      • Advantages of free market
      • Stock prices
    • Role of the central bank
      • Free currency market
      • Inflation target
      • Interest rates
      • Speculation in the market
      • Results
    • Misinformation
      • Scores from credit rating agencies
      • Growth of the banking sector compared to the GDP
    • Events leading to the financial crisis
      • Refinancing in 2006
      • Panic
      • Lack of insurance accounts in Europe
      • UK government antiterrorism legislation
    • Icelandic banks collapse
    • International Monetary Fund (IMF) intervention
    • Threat of increased government debt
  • 53:31    |    
  • 54:28.5    |    
    Question and answer period
    • How did Iceland promote investment in other sectors besides fishing?
    • Is the free market losing the media battle?
    • Was there increased emigration due to the crisis?
  • 01:02:28.5    |    
    Final credits

Financial Crisis in Iceland

New Media  | 26 de marzo de 2009  | Vistas: 304

About this video

The global financial crisis has had a serious impact on many national economies including Iceland's.  Iceland is a small country whose principal economic activity is fishing. Despite being part of the European Union, it exerts relatively little influence in world politics and has no military power.  In this conference, Birgir Pétursson explains some of the economic, financial, and social conditions that allowed this country to achieve the levels of wealth attained in 2003–2004, and what happened to its economy when the financial bubble burst.  He also discusses how the actions of central banks around the world, in reacting to the crisis, affected many other countries.  According to Pétursson, the world's current economic situation was brought about by human error and a lack of foresight.  Finally, he shares his views on the future of Iceland's and the world's economies.


Financial Crisis in Iceland
Birgir Pétursson

Business School, EN-601 
Universidad Francisco Marroquín
Guatemala, March 26, 2009

New Media - UFM production.  Guatemala, March, 2009
Camera: Jorge Samayoa, Joni Vasquez; digital editing: Adrián Méndez; index and synopsis: Sergio Bustamante; content revisers: Sebastian del Buey, Daphne Ortiz, Jennifer Keller; transcript: Lucía Canjura; content reviser: Rebeca Zuñiga; publication: Mario Pivaral/Carlos Petz


Birgir T. Pétursson is an attorney and a partner at GHP…


Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín