fundamentals cannot be ignored, there is a special role for the central bank that has to provide liquidity in times of market panic … and by the same token the stability of the Eurozone. …

We test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self …-fulfilling liquidity crises than in stand-alone countries. We find evidence that a significant part of the surge in the spreads of the PIGS … countries in the Eurozone during 2010-11 was disconnected from underlying increases in the debt to GDP ratios and fiscal space …

We test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self …-fulfilling liquidity crises than in stand-alone countries. We find evidence that a significant part of the surge in the spreads of the PIGS … countries in the Eurozone during 2010-11 was disconnected from underlying increases in the debt to GDP ratios and fiscal space …

This paper tests the hypothesis that government bond markets in the eurozone are more fragile and more susceptible to … self-fulfilling liquidity crises than in stand-alone countries. We find evidence that a significant part of the surge in … the spreads of the PIGS countries (Portugal, Ireland, Greece and Spain) in the eurozone during 2010-11 was disconnected …

We test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self …-fulfilling liquidity crises than in stand-alone countries. We find evidence that a significant part of the surge in the spreads of the PIGS … countries in the Eurozone during 2010-11 was disconnected from underlying increases in the debt to GDP ratios and fiscal space …

equilibria by self-fulfilling fears of liquidity crises in a monetary union. The ECB decided to take on this role in 2012. I …