this hypothesis by showing that banks more exposed to government debt securities had higher loan growth than less exposed … banks that were more exposed to government debt securities. Second, using balance sheet data on corporates, we verify that … announcement. Furthermore, our sample shows that corporations in countries with banks more exposed to government debt securities …

reversing the dynamics of the European sovereign debt crisis. …

reacts positively to the lagged public debt ratio and past primary government balances contribute to the reduction of the … public debt ratio, indicating a Ricardian fiscal regime. Furthermore, in a panel framework: (ii) the response of revenues to … government expenditures is higher from 2010 onwards, and, for higher average public debt ratios, the response is lower, while …

function captures the response of the primary balance to changes in the public debt ratio. In the second step, we examine how …