Iceland Left Out in the Cold?International Political Theory

Professor Hannes H. GissurarsonNOPSA-37, Gothenburg

14 August 2014, 8.45–9.45

US v. Cuba, Prussia v. Denmark

Division of Central Europe

Iceland: 325,000 Without a Military

Top Credit Ratings Created Bubble

1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

A2A1

Aa3

AaaAa1

A1

Baa3

Baa1

External Debt: 2004 Crucial Year

1992 1996 2000 2004 20080

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

External debt in millions of kronur

2004–8: Baugur Bubble

1/1/05 1/1/06 1/1/07 1/1/080

1000

2000

3000

4000

5000

6000

Loans to Baugur and re-lated companiesLoans to Exista and re-lated companiesLoans to Landsbanki main owners and related com-panies

No more “Oversized” than others

Belgium

Switzerland

Iceland

United Kingdom

0 50 100 150 200 250 300

Ratio of short-term liabili-ties to GDP

Size of Banking Sector, 1992–2007

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20080

1

2

3

4

5

6

7

8

9

10

SwitzerlandIceland

Why Does Glass Break?

Crucial Announcements and Decisions

Loss of Social Capital

Haakon VII’s gate 10 in Oslo

The Scottish Angle

Friends in Need, Friends Indeed