This paper tests the hypothesis that government bond markets in the eurozone are more fragile and more susceptible to … the spreads of the PIGS countries (Portugal, Ireland, Greece and Spain) in the eurozone during 2010-11 was disconnected … eurozone into bad equilibria.We also find evidence that after years of neglecting high government debt, investors became …

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