ABSTRACT
This chapter discusses the democratic practices in the period of transition in Iceland during the years before and after the financial collapse. It also explains the analyses of the Special Investigation Commission of the Icelandic Parliament (SIC) and the Working Group on Ethics (WGE), which were charged with the task of explaining the causes of the crash. A persistent criticism of Icelandic governance in the SIC Report concerns the lack of professional practices in relation to policy and decision-making. Regulatory or supervising agencies play an important role in a democratic society by ensuring that financial institutions work within the boundaries of the law and do not pose a threat to economic stability. The Icelandic media proved unable to provide this resistance in the years preceding the financial crisis. From a democratic point of view, it is certainly commendable to engage the public in the process of revising the constitution.
