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 … swap index: the higher the bank credit risk, the higher the extra premium on fundamentals; 3) after ECB President Draghi …

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 …

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 … exposures significantly amplified the transmission of risk from the sovereign and its impact on lending. This amplification of …

advantage of their higher risk-bearing capacity to gain exposure (via central bank liquidity) to the set of riskier sovereign … risk-weighted capital framework of banks. …

assess the effects of an uncertainty shock in the Euro area. This allows us to treat macroeconomic uncertainty as a latent … consequences jointly, and most are based on single country models. We analyze the special case of a shock restricted to the Euro …

The introduction of the euro meant that countries with sovereign debt problems could not use monetisation and … devaluation as a way to prevent default. The institutional structures of the euro were also widely thought to prevent a country in … difficulties being bailed out by other euro members or having its sovereign debt purchased by the ECB. Despite these restrictions …

We use quanto credit default swaps to analyze the impact of a credit event in the Euro zone on the Euro-Dollar exchange … credit event if the payment in such an event is denominated in US-Dollar rather than in Euro, because they expect the Euro to … conditional on a credit event of a member of the Euro zone. We find that the implied effect is quite heterogeneous across the …

accused Germany of pursuing "beggar-my-neighbor" policies with its trade surpluses that threaten the Eurozone and even the … global economy. Germany protests that it did all it could to save the euro and is doing all it can to contribute to European … economic health. Indeed, by 2017, the euro had survived. But, it survived at the expense of the societies and the economies of …