Rekstrarhópsins

Rekstrarhópsins, also known as the Icelandic Financial Crisis, was a significant economic event that occurred in Iceland from 2008 to 2011. The crisis was triggered by the collapse of the country's banking system, which was heavily exposed to the subprime mortgage crisis in the United States. The crisis had severe consequences for Iceland's economy, leading to high unemployment, significant public debt, and a severe recession.

The crisis began in October 2008 when the Icelandic banking system was severely affected by the global financial crisis. The collapse of Lehman Brothers and the subsequent freeze of the Icelandic banks led to a run on the banks, causing a liquidity crisis. The Icelandic central bank, Seðlabanki Íslands, was unable to provide sufficient liquidity to the banks, leading to their collapse.

The Icelandic government responded by nationalizing the banks and providing them with emergency loans. However, the crisis had already caused significant damage to the economy. Unemployment rose sharply, and the public debt soared. The government implemented austerity measures to reduce the budget deficit, but these measures were widely unpopular and contributed to political instability.

The crisis had a profound impact on Iceland's economy and society. The country's GDP shrank by over 20% in 2009, and unemployment peaked at over 12% in 2010. The crisis also led to a significant increase in public debt, which reached over 100% of GDP by 2011. The crisis had a lasting impact on Iceland's economy, with the country taking several years to recover from the recession.