for the euro area in order to study the features of financial intermediation over the business cycle. We find that …

between generalized financial crises on the one hand and isolated bank failures, debt defaults and foreign-exchange market … disturbances on the other. We represent this distinction in three sets of linkages: between debt defaults and bank failures …; between exchange-market disturbances and debt defaults; and between exchange-market disturbances and bank failures. In both …

management of the Greek crisis and the resulting European Sovereign debt crisis. We show the conditions under which the …

The sovereign debt default and the linkages from banking and currency crisis have been rarely explored in the crisis …, appreciated real exchange rates and real international monetary policy rates. It is discovered that currency, banking and debt … raises the probability of a debt crisis. …

, reflecting the expected devaluation. Rather than selling debt at punitive rates, fiscal authorities will turn to temporary money … fiscal authorities can obtain temporary money financing of deficits. During a crisis domestic interest rates increase … debt maturing during the crisis is sufficiently small - a condition that can be met by reducing the stock of public debt …

High-debt countries may face the risk of self-fulfilling debt crises. If the public expects that in the future the … government will be unable to roll over the maturing debt, they may refuse to buy debt today and choose to hold foreign assets … confidence crisis is more likely if the average maturity of the debt is short. Conversely, a long and evenly distributed maturity …

the country default on its debt triggers a reversal in the direction of inflows of international financial capital raise … interest-rate spreads and thus the cost of servicing the public debt. The analytical framework is standard: creditors observe …

We scrutinize two strands of received wisdom about debt crises: that which draws a strong contrast between the 1930s … settlement achieved in a way that readily permitted countries to put the debt crisis behind them. And creditor …-country governments were often intimately involved in the process of debt negotiation. We consider a number of additional factors …

the same time, private debt levels, particularly those of financial institutions and households, are in uncharted …, restructuring of public and private debts. A more subtle form of debt restructuring in the guise of "financial repression" (which … had its heyday during the tightly regulated Bretton Woods system) also importantly facilitated sharper and more rapid debt …

state and regulators are not necessarily independent. Among other things, we show that firms invest more, issue more debt …