In the current debate on the reasons and implications of the Greek and Irish euro crisis, the intra-European current … imbalances since the euro introduction and thereby the current European debt crisis. Based on this finding we argue that an … imbalances ; inter-temporal savings ; financial crisis ; euro crisis ; European debt crisis ; theory of optimum currency areas …

We study the determinants of sovereign bond spreads in the euro area since the introduction of the euro. We show that …

. The results are robust to controlling for country fixed effects and different estimation methodologies. …