When Small Countries Crash

Financial crises shape history. When Small Countries Crash captures the drama and impact of economic collapse in small nations. MacDonald and Novo tell the story of panics, bubbles, and ruin across the gamut of financial history from the seventeenth century to today, tracing the integral relationship between economic trouble and political instability.

Small economies, the authors argue, are exposed to particular risks. They are often hostage to events in larger neighbors, lack economic diversification, face challenges in creating economies of scale, and are prone to precariously interconnected business relationships. While vulnerable to shocks from larger economies, troubles in small economies are a threat to larger systems as well.

As the authors demonstrate in their analysis of Scotland, the Caribbean, Finland, Albania, Iceland, Ireland, and Greece, the cost of financial missteps for small countries is significant; and the road to recovery long and painful. This in-depth study is unique in its close look at financial disaster in countries that have, until now, been overlooked. In today's world, the lessons and legacies of financial crises in small countries are more relevant than ever.

Scott B. MacDonald is a partner and head of credit and economic research at Aladdin Capital Management, LLC. He is the author of numerous books, including European Destiny, Atlantic Transformations, A History of Credit and Power in the Western World, and Separating Fools from Their Money.
Andrew R. Novo received his doctorate degree from the University of Oxford. He specializes in the history of the Mediterranean world, both ancient and modern, and works as a researcher and writer for Harvard University.