This paper simultaneously analyzes wake-up-call and pure contagion of sovereign risk in the Eurozone during its recent … policymakers. For all Eurozone countries considered, we observe an increase in the relevance of general risk aversion towards …

We test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self … peripheral Eurozone countries during 2010–11 was disconnected from underlying increases in the debt to GDP ratios and fiscal … 2010. We argue that this can drive member countries of the Eurozone into bad equilibria. We also find evidence that after …

in eurozone countries. We argue that there exist offsetting effects: expectations of bailouts tend to make a given level …'s ability to raise the primary surplus in response to higher debt), and apply it to the eurozone countries, investigating in … fiscal space. We find that in quiet times, CDS and bond rates for eurozone members were below what would be expected given …

economic fundamentals over 2005–10. We focus in particular on five countries in the South-West Eurozone Periphery, Greece … statistically and economically important determinants of sovereign risk. However, risk-pricing of the Eurozone Periphery countries …. Eurozone Periphery default risk is priced much higher than the matched countries in 2010, even allowing for differences in …