Dreisbach, Dina; Fehr, Hans; Kindermann, Fabian - In: Review of Economics 61 (2010) 1, pp. 1-20
The present paper focuses on the trade-off between official liquidity provision and debtor moral hazard in sovereign debt problems. The financial crisis is caused by the interaction of bad fundamentals, self-fulfilling runs of private investors and optimal policies of the national government and...
