increase risk premia measured by relative swap spreads. The effect of deficits is significantly lower under EMU. This effect …

EMU driven interest rate convergence has led to a significant reduction of borrowing costs for some European …

analysis suggests that, given EMU's present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process … with a future moral hazard problem. Based on our analysis, we suggest that the EMU's institutional design could be improved … processes as well as the conditions and parameters on which the scope and limits of fiscal redistribution in EMU depends. In …

analysis suggests that, given EMU's present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process … with a future moral hazard problem. Based on our analysis, we suggest that the EMU's institutional design could be improved … negotiation processes as well as the conditions and parameters on which the scope and limits of fiscal redistribution in EMU …

This paper focuses on roots of strain in the European Monetary Union (EMU). It argues that there is need for a thorough …-connectedness. Moreover, the EMU was sub-optimal from its debut and competitiveness gaps did not diminish against the backdrop of its … private sector and poor lending by banks, as well as a one-sided monetary policy, also explain this debacle. The EMU needs to …

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 …