Despite a formal 'no-bailout clause,' we estimate significant net present value transfers from the European Union to … during the Eurozone crisis. We propose a model to analyze and understand bailouts in a monetary union, and the large observed … bailout was to prevent an exit from the eurozone and possible contagion. Bailouts to avoid sovereign default were …

) that stipulate a suspension of debt payments when the government faces liquidity shocks in the form of an increase of the … bondholders' risk aversion. We find that in spite of reducing the frequency of defaults triggered by liquidity shocks, introducing … cocos increases the overall default frequency. By mitigating concerns about liquidity, cocos make indebtedness and default …

By analysing data from January 2007 to December 2012 in a panel GLS error correction framework we find that European … countries’ sovereign CDS spreads are largely driven by global investor sentiment, macroeconomic fundamentals and liquidity … drop in liquidity and a spike in risk aversion contributed to high spreads in Central and Eastern and South …

revisited by Italian and French authorities in 2021: the one-off mutualization of some European legacy debt through the creation … of a European Debt Management Agency (EDMA). The paper does not argue in favor or against these proposals or make a … the convenience yield on European-wide safe assets, the EDMA could issue up to 15 percent of euro area GDP, helping to put …