This paper discusses the fault lines in cross-border banking, both at the global level and at the European Union/European Economic Area (EU/EEA) level, using the case of the three Icelandic cross-border banks as an example. Cross-currency liquidity risk built up prior to the crisis, especially...

Iceland was a high inflation country from the second half of the seventies and until the middle of the eighties. During the middle of the nineties inflation in Iceland, at less than 2% p.a., was among the lowest in the OECD. In this paper we analyse the roots of high inflation in Iceland and the...

Trade integration has advanced far in East Asia whereas financial integration has been lagging. Important policy initiatives have, however, been taken. This process will eventually require further relaxation of cross-border capital controls, which in turn will make exchange rate stabilisation...