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

at risk Eurozone' financial stability. In this paper, we estimate a Panel VAR (PVAR) model on the EMU area employing …

bond-yield volatility than shocks to the underlying fundamentals. In a second step, we develop a correlation and causality …

sparked an unprecedented sovereign debt crisis that rapidly spread to the Euro-Zone's weakest member states. As the crisis … increasingly drove a wedge between a seemingly resilient Euro-Zone core and its faltering periphery, its first collateral victims … were the private banks of the hardest-hit sovereigns. They were rapidly followed by the rest of the Euro-Zone's banks as a …