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The Sustainability of Monetary Unions - Can the Euro Survive?

Canofari, Paolo - 2012

This paper aims to propose a new measure of exchange market pressure for countries operating in hard peg regimes, such as currency unions, currency boards or full dollarization. We use a general model of currency crisis to derive a sustainability index based upon the relationship between the...

Persistent link: https://www.econbiz.de/10013108459

Are twin currency and debt crisis special?

Bauer, Christian; Herz, Bernhard; Karb, Volker - 2006

In the literature on currency and banking crises it has become the standard procedure to distinguish pure currency crises, pure banking crises and combined ("twin") currency and banking crises. We show theoretically and empirically that a similar differentiation should be chosen with regard to...

Persistent link: https://www.econbiz.de/10009746211

Emu 2.0 Drawing Lessons from the Crisis - a New Framework for Stability and Growth

Papaspyrou, Theodoros - 2022

This paper, drawing on the lessons from the sovereign debt crisis, tries to give answers to some key questions: Was the strategy and specific actions to cope with the crisis appropriate? Was the priority given to preserving financial stability justified? Are stability and growth objectives...

Persistent link: https://www.econbiz.de/10014078959

Sovereign Bond Spreads and the Pricing of Sovereign Debt in the Eurozone : A Macroeconomic Fundamentals Approach

Goldberg, David - 2017

This paper investigates and models the yield spreads of sovereign debt of Eurozone countries by means of macroeconomic … fundamentals. In particular, this paper shows that the change in the volatility of terms-of-trade of trade outside the Eurozone was … terms-of-trade in this manner for the Eurozone, and presents important findings for fixed income investors …

Persistent link: https://www.econbiz.de/10012948379

Debt, Defaults and Dogma : Politics and the Dynamics of Sovereign Debt Markets

Cotoc, Jonny - 2018

Using data from 40 nations, we obtain new stylized facts regarding the impact of political leanings of the ruling government on sovereign debt yields and fiscal policy. Left-wing governments' yields are 166 basis points higher and 23% more volatile than yields of right-wing governments....

Persistent link: https://www.econbiz.de/10012912092

The Dynamics of Sovereign Debt Crises and Bailouts

Uhlig, Harald - 2018

Motivated by the recent European debt crisis, this paper investigates the scope for a bailout guarantee in a sovereign debt crisis. Defaults may arise from negative income shocks, government impatience or a "sunspot"-coordinated buyers strike. We introduce a bailout agency, and characterize the...

Persistent link: https://www.econbiz.de/10012919601

Sovereign Debt Crises and Low Interest Rates

Bloise, Gaetano; Vailakis, Yiannis - 2021

We revisit the occurrence of self-fulfilling crises in sovereign debt markets under time-varyinginterest rates and growth. We show that, when long-term interest rates exceed growth, insolvencyis solely caused by the exhaustion of the sovereign’s debt repayment capacity subject to...

Persistent link: https://www.econbiz.de/10013227628

Chapter 12. International Financial Crises

Lorenzoni, Guido - In: Handbook of international economics : Volume 4, (pp. 689-740). 2014

This chapter surveys recent research on international financial crises. A financial crisis is characterized by a sudden, dramatic outflow of financial resources from an economy with an open capital account. This outflow may be primarily driven by the expectation of a large nominal devaluation,...

Persistent link: https://www.econbiz.de/10014025374

Sovereign Debt Markets in Turbulent Times : Creditor Discrimination and Crowding-Out Effects

Broner, Fernando - 2014

In 2007, countries in the euro periphery were enjoying stable growth, low deficits and low spreads. Then the financial crisis erupted and pushed them into deep recession, raising their deficits and debt levels. By 2010, they were facing severe debt problems. Spreads increased and, surprisingly,...

Persistent link: https://www.econbiz.de/10013058811

Sovereign Debt Markets in Turbulent Times : Creditor Discrimination and Crowding-Out

Broner, Fernando - 2014

other countries in the Eurozone, and how they may be addressed by policies at the European level …

Persistent link: https://www.econbiz.de/10013059093