Fyrirkomulagsins

Fyrirkomulagsins, also known as the Icelandic Financial Crisis, was a significant economic event that occurred in Iceland between 2008 and 2011. The crisis was triggered by the collapse of the country's banking system, which was heavily reliant on foreign investment. The Icelandic banking system was characterized by a high degree of leverage, with banks holding large amounts of foreign currency-denominated assets and short-term liabilities.

The crisis began in October 2008 when the collapse of the British bank Lehman Brothers led to a run on the Icelandic banks, particularly Glitnir Bank. The run on Glitnir Bank was exacerbated by the fact that the bank held large amounts of US dollar-denominated assets, which became worthless when the US dollar depreciated against the Icelandic króna.

The collapse of Glitnir Bank triggered a chain reaction, with other banks in the country also experiencing runs and eventually collapsing. The Icelandic government was forced to nationalize the banking system, with the central bank, Landsbanki, taking control of the largest banks in the country.

The crisis had severe economic consequences for Iceland, with the country's GDP contracting by 10.6% in 2009. The crisis also led to a significant increase in unemployment, with the unemployment rate reaching 12.5% in 2010. The crisis also had social consequences, with many families losing their homes and businesses.

The crisis was eventually resolved in 2011, when the Icelandic government agreed to a bailout from the International Monetary Fund (IMF) and the European Union (EU). The bailout involved a series of austerity measures, including cuts to public spending and increases in taxes. The crisis also led to significant reforms of the Icelandic banking system, with stricter regulations being introduced to prevent a similar crisis from occurring in the future.