The Journal of Financial Crises Volume 1 Issue 3 2019 Ireland and Iceland in Crisis D: Similarities and Differences Arwin G. Zeissler Yale University Daisuke Ikeda Bank of Japan Andrew Metrick Yale University Follow this and additional works at: https://elischolar.library.yale.edu/journal-of-financial-crises Part of the Comparative Politics Commons, Economic History Commons, Economic Policy Commons, European Law Commons, International Relations Commons, Macroeconomics Commons, Policy History, Theory, and Methods Commons, Political Economy Commons, and the Public Policy Commons Recommended Citation Zeissler, Arwin G.; Ikeda, Daisuke; and Metrick, Andrew (2019) "Ireland and Iceland in Crisis D: Similarities and Differences," The Journal of Financial Crises: Vol. 1 : Iss. 3, 44-56. Available at: https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss3/4 This Case Study is brought to you for free and open access by the Journal of Financial Crises and EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact
[email protected]. Ireland and Iceland in Crisis D: Similarities and Differences1 Arwin G. Zeissler2 Daisuke Ikeda3 Andrew Metrick4 Yale Program on Financial Stability Case Study 2014-5A-V1 December 1, 2014, Revised: October 1, 2015, October 30, 2019 Abstract On September 29, 2008—two weeks after the collapse of Lehman Brothers—the government of Ireland took the bold step of guaranteeing almost all liabilities of the country’s major banks. The total amount guaranteed by the government was more than double Ireland’s gross domestic product, but none of the banks were immediately nationalized. The Icelandic banking system also collapsed in 2008, just one week after the Irish government issued its comprehensive guarantee.