Previous work has documented a greater sensitivity of long-term government bond yields to fundamentals in Euro area … stress countries during the euro crisis, but we know little about the driver(s) of regime-switches. Our estimates based on a …

Using novel monthly data for 226 euro-area banks from 2007 to 2015, we investigate the causes and effects of banks …' sovereign exposures during and after the euro crisis. First, in the vulnerable countries, the publicly owned, recently bailed …

The euro crisis was fueled by the diabolic loop between sovereign risk and bank risk, coupled with cross-border flight … and approximately double the supply of euro safe assets when protected by a 30%-thick junior tranche. Second, a model …

for the eurozone. The triple euro area crisis showed the costly consequences of ignoring the "safety trilemma". Keeping a … capital mobility and maintaining economic and financial stability in a monetary union. The euro area needs a single safe … countries must therefore act as the joint sovereign behind the euro and choose from two options. First, they could establish a …

Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers have … policy discussions, this paper simulates portfolio reallocations by euro area banks under scenarios for regulatory reform …