debt crisis. It shows that a deterioration in countries’ fundamentals and fundamentals contagion – a sharp rise in the … spreads during the crisis, not only for euro area countries but globally. By contrast, regional spillovers and contagion have … been less important, including for euro area countries. The paper also finds evidence for herding contagion – sharp …

tests for contagion (i.e., an intensification in the transmission of shocks across countries), fragmentation (a reduction in … after the European Central Bank’s (ECB’s) announcement of its Outright Monetary Transactions (OMT) program in 2012. At the … same time, Italy and Spain became more interdependent after the OMT announcement, providing our only evidence of contagion …

In this paper, we provide new evidence on the determinants of sovereign yield spreads and contagion effects in the euro … contagion driven by shifts in market sentiment. This evidence points to a discontinuity in the disciplinary role of financial …

bidders are more concerned with the loser’s nightmare, collateral, and future interest rate reductions by the ECB. Small and …

We construct a model to analyse the two types of tender procedures used by the European Central Bank (ECB) in its open … market operations. We assume that the ECB minimizes the expected value of a loss function that depends on the quadratic … function for the ECB. …

This paper estimates a monetary policy reaction function for the ECB over the period 1999-2009. To allow for a … the ECB cut rates more aggressively than expected solely on the basis of the worsening of macroeconomic conditions …