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 …

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 …

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. …

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 …

, 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 …

, stochastic environment. Keeping the firm as an ongoing concern has an option value but equity and debt holders value it … option approach, we characterize the resulting agency costs of debt, derive the ‘price’ of these costs and analyse their … dynamics. We also show how agency costs can be reduced by the design of debt and the possibility of renegotiation. …

using debt-output ratios and real interest rates. These last two variables emerge as influences on business defaults in the …