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We assess the role of financial linkages in the transmission of sovereign risk in the Euro Crisis. Building on the narrative approach by Romer and Romer (1989), we use financial news to identify structural shocks in a vector autoregressive model of daily sovereign CDS premia for eleven European...
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We examine the sustainability of public finances and its determinants for 19 Eurozone countries from 1995 to 2020. We …
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attenuated the pressure of the markets on the endangered peripheral countries of the Eurozone. Critics argue that by eliminating …
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