The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the … political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our … analysis suggests that, given EMU's present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process …

The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the … political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our … analysis suggests that, given EMU's present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process …

strengthen the EZ through at least four channels. -- sovereign debt crisis ; Eurozone ; Euro ; exit rules ; bail-out ; political …This paper argues that the key issue for defining and solving the Eurozone's (EZ) difficulties lies in readjusting the … essence of today's crisis we analyze to what extent a "troubled" periphery EZ member can negotiate a bailout from the center …

This paper argues that the Eurozone crisis stems from a risk management failure in the Eurosystem's design, and that … monetary union and other assets. We firstly analyse a country's debt choice, assuming as a benchmark case that the no-bailout …

Debt Overhang is a controversial issue in the eurozone countries and is considered as one of the factors which created …

This paper argues that the key issue for defining and solving the Eurozone's (EZ) difficulties lies in readjusting the … essence of today's crisis we analyze to what extent a ‘troubled' periphery EZ member can negotiate a bailout from the center …

We use an overlapping generations model to show that a bail-out is the optimal response to a fiscal crisis when the … be optimal expost, the no bail-out rule is not credible ex-ante. To make it credible, one would have to look for …