macroeconomic data from 1980 to 2012 and contrast a panel of 22 OECD countries with 11 EMU member countries and the so called GIIPS … of the EMU. In particular, we find that the relationship between the perceived default risk reflected by long … cluster specific. Our findings suggest that there is a strong connection of institutional aspects of EMU and the relationship …

This paper qualifies the view of pronounced overpricing of sovereign bonds for the so-called GIIPS countries during the … the Maastricht treaty, the EMU convergence era, and the financial crisis. In detail, we find: (i) Since the 1980s the role … treaty, and again with the wake-up call due to the onset of the financial crisis. (ii) Before the financial crisis EMU member …

-called GIIPS countries before the start of the financial crisis. Our results also qualify the view of pronounced overpricing in the … financial crisis. (ii) Before the financial crisis EMU member countries had de facto been perceived as a homogenous group with …

This paper qualifies the view of pronounced overpricing of sovereign bonds for the so-called GIIPS countries during the … the Maastricht treaty, the EMU-convergence era, and the financial crisis. In detail, we find: (i) Since the 1980s the role … treaty, and again with the wake-up call due to the onset of the financial crisis. (ii) Before the financial crisis EMU member …

test of this proposition, and the outcome leaves the EU found wanting. The first section of this paper places EMU in the …

We specify an open-economy version of a two-region New Keynesian model for EMU and demonstrate that the result on the …