Lehman Brothers ‘crash’: Consequences on Iceland’s economy and social welfare Clara Villarroya Gargallo a
[email protected] Supervised by: Juan Carlos Cuestas Olivares EC-1049 Bachelor’s Thesis Academic year 2017-2018, degree in Economics November 2018 Abstract In this paper will be made a review of the literature giving information about the immobile bubble 'crush', taking as starting point the fall of the great american company Lehman Brothers, and the main causes will be discussed in order to have an overview of this global crisis. Iceland was one of the European countries whose economy was most affected but also one of the fastest in recovering of it. With the analysis of some of the meters of the economy and social welfare, such as the GDP, inflation, unemployment, average wage, public debt and public deficit; the data before the crisis will be compared with the data after the crisis to see which economic measures took the government of this country to mitigate the damage of the 'crash' and see if the government responses were effective or not in order to get conclusions. Key words: Lehman Brothers, Iceland, Crisis, Economy JEL Classification: N 24, N12, F23, G2, E00 provided by Repositori Institucional de la Universitat Jaume I View metadata, citation and similar papers at core.ac.uk CORE brought to you by CONTENTS 1.INTRODUCTION..............................................................................................p. 3- 4 2.LEHMAN BROTHERS: COMPANY HISTORY.................................................p. 5- 6 3.THE FALL OF LEHMAN BROTHERS..............................................................p. 6- 9 4.CONSEQUENCES FOR ICELAND……………………….................................p. 9- 23 4.1. Gross Domestic Product (GDP) and inflation after the crisis.......p.