The outburst of the euro area sovereign debt crisis made evident the feedback loop between the sovereigns and the banks. The aim of this paper is to analyze whether the feedback loop has receded after the implementation by the European authorities of a number of monetary and regulatory policy...

Public sector corruption affects economic and financial outcomes, such as GDP growth, foreign direct investment, and government funding costs. Less is known about the spillovers from perceptions of public sector corruption on the private sector corporate bond market. In this paper, we assess the...