higher growth. Our analysis accommodates costly signaling for gaining credibility and also assigns a novel role to spending …

, we show that bailout plans with controlled interest rates can help in reducing debt-GDP ratios after some time. On the …

applying insurance theory is useful. We model risk neutral agents choosing portfolios of government bonds of n countries in a … monetary union and other assets. We firstly analyse a country's debt choice, assuming as a benchmark case that the no-bailout …

. -- Greek crisis ; bail-out ; negative externality ; political economics ; game theory ; euro ; EMU …The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the … political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our …

essence of today's crisis we analyze to what extent a "troubled" periphery EZ member can negotiate a bailout from the center … strengthen the EZ through at least four channels. -- sovereign debt crisis ; Eurozone ; Euro ; exit rules ; bail-out ; political … economics ; game theory …