We use a network model of credit risk to measure market expectations of the potential spillovers from a sovereign … networks, and estimate it with data on sovereign credit default swap spreads and the detailed structure of financial linkages … generates only small spillovers to other sovereigns. These results imply that credit markets do not demand a significant premium …

process in Greece, Spain, Ireland, and Portugal and, by way of contrast, in Germany, a country that did experience a reform … back into financial conditions, prolonging the credit boom and delaying the response to the bubble when the speculative …

All of the attempts to end the euro crisis and to return the Eurozone countries to healthy growth rates of income and … by the individual Eurozone countries. I describe some of these fiscal options after reviewing the history of failed …

This paper looks at the short history of the Eurozone through the lens of an evolutionary approach to forming new … institutions. The euro has operated as a currency without a state, under the dominance of Germany. This has so far allowed the euro … to achieve a number of design objectives, and this may continue, as long as Germany does not shirk its growing …

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit … markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of …-country and using insolvency reforms as natural experiments. Our empirical estimates suggest that a one …

, which inflated their economies by allowing credit booms. Core EMU countries took on extra foreign leverage to expose …

This paper investigates the impact of credit rating changes on the sovereign spreads in the European Union and … investigates the macro and financial factors that account for the time varying effects of a given credit rating change. We find … country groupings and dynamic structures. Dynamic panel model estimates indicate that a credit rating upgrade decreases CDS …