Eijffinger, Sylvester C W; Kobielarz, Michal L.; Uras, … - C.E.P.R. Discussion Papers - 2015
The European sovereign debt crisis is characterized by the simultaneous surge in borrowing costs in the GIPS countries after 2008. We present a theory, which can account for the behavior of sovereign bond spreads in Southern Europe between 1998 and 2012. Our key theoretical argument is related...