This paper shows that the sovereign debt crisis and the resulting credit crunch in the periphery of the Eurozone lead …-specific macroeconomic shocks or a change in the demand for credit of borrowing firms. Thus, the high interdependence of bank and sovereign … health and the resulting credit crunch is one important contributor to the severe economic downturn in the southern European …

the credit market in a model of opportunistic debtors and inefficient courts. According to the model, improvements in … judicial efficiency should reduce credit rationing and increase lending, with an ambiguous effect on interest rates that … provinces and by cross-country evidence. In Italian provinces with longer trials or large backlogs of pending trials, credit is …

credit bureaus and public credit registers. We find that bank lending is higher and proxies for default rates are lower in …

The degree to which credit markets discipline sovereign borrowers is investigated by estimating the supply curve for … debt faced by US states. The results generally support an optimistic view of the market discipline hypothesis, with credit … some evidence that credit markets may withhold access to credit at very high levels of debt. …

changes in real GDP, the stock market, country credit ratings, and the exchange rate. We explore the linkages between these …