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Nationalisation, but not as we know it?

Nationalisation has been seen by most people as something very much of the past. However, the financial crisis has changed all that and the recent nationalisation of banks in Iceland and part-nationalisation of UK banks has brought the concept under the economic microscope once again.

Iceland struggles for control as it nationalises Kaupthing Times Online (10/10/08)
Brown and Darling have bitten the bullet – and set the world an example Guardian (9/10/08)
G7 ministers forced to think the unthinkable Guardian (11/10/08)

Questions
1. Define the term ‘nationalsation’.
2. Assess why the Icelandic government felt that the nationalisation of Kaupthing was the best solution to their financial situation.
3. Discuss the extent to which other countries may be obliged to nationalise their banks.
4. Discuss whether the current tranche of nationalisation is likely to be extended beyond the finance industry.
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