Using novel data on individual euro area banks' balance sheets this paper shows that exposure to stressed European … sovereigns manifested in a liquidity shock to their international funding through two channels: (i) a contraction in cross … measures, in the form of the 3-year Long-Term Refinancing Operations (VLTROs), in mitigating effects of the European sovereign …

This paper argues that the Eurozone crisis stems from a risk management failure in the Eurosystem's design, and that …

French, Italian, German and Spanish long-term sovereign bonds during the culmination of the Eurozone debt crisis in 2011 …-time capital allocation in the Eurozone. Their downgradings caused investors to rebalance their portfolios across member countries …

the Eurozone crisis in 2009, irrespective of economic and institutional fundamentals. A subsequent analysis of the markup …