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'A Crisis of Affluence': the Politics of an Economic Breakdown in Iceland

This article deals with the collapse of the Icelandic banking system in 2008 and its impact on society, politics and foreign relations. It approaches the crisis from the perspectives of the politics of memory, transnational discourses on 'weak states' and the destabilisation of fixed foreign and security policy identities. It discusses how transitional justice has become a vehicle for addressing issues of responsibility and culpability for the crash. It also shows how Iceland, while facing a 'crisis of affluence', has coped with going through the experience of a 'Third World' country dependent on a bailout from the International Monetary Fund. These political, moralistic, legal and economic processes—together with a protracted dispute with Britain and the Netherlands over the so-called Icesave issue—have generated a nationalistic backlash against Iceland's EU membership bid, contributed to political and economic uncertainty and underscored a lack of strategic direction in foreign policy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Irish Studies in International Affairs Royal Irish Academy

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