Searching Finance is delighted to announce that Olafur Margeirsson has signed with us to publish a book detailing the future of Iceland's economy, post collapse.
Olafur is a PhD student in Economics at the University of Exeter, United Kingdom. His current research is on how to measure and maintain financial stability and the effects of globalisation of banking on the stability of domestic financial systems.
Previously an analyst at Kaupthing Bank Research Department in Reykjavik from 2006 – 2008. Amongst his tasks was to analyse the expansion of the Icelandic banks in comparison with their Nordic peers. The utter failure of Icelandic economists, himself included, to anticipate the collapse shifted his way of economic thinking towards post-Keynesianism inspired by Hyman Minsky and Steve Keen. That allowed him to spot crucial institutional factors that hinder the Icelandic economy from ever being stable or prosperous for the longer term as long as they remain. He began blogging about it in Icelandic and appeared on news shows and documentaries giving stark warnings about the structural deficits in place. He also appeared and gave comments to the Indexation Committee set up by the parliament about how to react to the economic problems.
The ongoing economic collapse of Iceland that began in earnest in 2008 is unique in its sheer size; more than 90% of the banking system went bankrupt in days. But the collapse was always bound to happen due to the structural impossibilities that this work emphasises on, the timing was more or less a coincidence.
The lesson of Iceland is not only the usual but continuously disregarded collapse of neoclassical economic theory and how too much debt can ruin economies but how seemingly minor political and economic events and precautions in the past can change the endogenous nature of economies, making every economy special in its own structural way
At the tender age of 27, Olafur ties with Daniel Gusev as Searching Finance's youngest author.