ABSTRACT
This chapter deals with the processes and the issues of constitutionalism, democracy, and the crisis of finance and money, which they brought forward. Iceland had a near-death experience in 2008, and its krisis cure was not constitutional reform but rather the Icelandic state’s application of state prerogatives in accordance with the 1944 Constitution as a means of resistance. The Icelandic financial crisis was in 2008 seen by the rest of the world as the worst in any of the countries hit by the Great Financial Crisis, which was a global phenomenon. The financial crisis constituted a threat to Iceland’s statehood, as will be further explained. The challenge to Iceland’s Constitution by the financial crisis was, as it happened, marked by three distinguishable and different processes, all of constitutional significance going on simultaneously, two of them throughout nearly a decade.
