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Average rates in the decentralized unsecured market for euro funds, like the EONIA for the overnight maturity, are fundamental indicators of the smooth transmission of the signal rate by the central bank. Public information plays an important role in this context, as key interest rates are set...
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I analyze the Granger causality in distribution between sovereign bonds and industry indexes in the five European countries most affected by the debt crisis: Greece, Ireland, Italy, Portugal, and Spain. Prior research assessed the impact of the debt crisis on the financial firms, but its effect...
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We develop a theory of information spillovers in primary sovereign bond markets where governments raise funds from a common pool of competitive investors who may acquire information about default risk and later trade in secondary markets. Strategic complementarities in information acquisition...
Persistent link: https://www.econbiz.de/10013235478
The creation of EMU raises the question whether the common monetary policy has the same impact in all member countries. We analyse the convergence of interest rates in four major EMU countries from 1999 to 2007. We suggest to test the convergence of the interest rates with the full term...
Persistent link: https://www.econbiz.de/10008755247
This study shows that the origins of the sovereign debt crisis within the euro area are to be found within the private sector and in economic policy mistakes rather than only in the profligacy of some national governments in the Southern periphery of Euroland. Sovereign debtors and their private...
Persistent link: https://www.econbiz.de/10010669710
In this paper we assess the evolution of Romania’s economic convergence with the European Union (EU) and Euro area …, during the period 2000-2010. In order to determine the number of years required to reach the EU and Euro area average, we … been climbing the ladder in the process of catching-up with the EU and the Euro area until 2008 when, because of the …
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