and after the start of the current financial crisis. The study finds, first, that bond yield spreads before and during the … crisis can largely be explained on the basis of economic principles. Second, markets penalise fiscal imbalances much more … US which they did not have before the crisis. These findings underpin the need for achieving sound fiscal positions in …

From the onset of the 2007-2009 crisis, the Federal Reserve and the European Central Bank have aggressively lowered … interest rates. Both sets of changes are at odds with an anti-inflationary stance of monetary policy; indeed, as the crisis … Taylor rules for our economy that are consistent with a strong pro-inflationary reaction during financial crisis while …

crisis since mid-2007. We also find that there is some tendency of the yield movements to be larger when the demand for the …