Showing 1 - 10 of 31
Persistent link: https://www.econbiz.de/10011551186
Persistent link: https://www.econbiz.de/10011521970
We propose a simple model of the sovereign-bank diabolic loop, and establish four results. First, the diabolic loop can be avoided by restricting banks' domestic sovereign exposures relative to their equity. Second, equity requirements can be lowered if banks only hold senior domestic sovereign...
Persistent link: https://www.econbiz.de/10011560340
The euro crisis was fueled by the diabolic loop between sovereign risk and bank risk, coupled with cross-border flight-to-safety capital flows. European Safe Bonds (ESBies), a union-wide safe asset without joint liability, would help to resolve these problems. We make three contributions. First,...
Persistent link: https://www.econbiz.de/10011540824
Persistent link: https://www.econbiz.de/10011449866
Persistent link: https://www.econbiz.de/10011475037
Persistent link: https://www.econbiz.de/10011700184
Persistent link: https://www.econbiz.de/10011810443
The euro crisis was fueled by the diabolic loop between sovereign risk and bank risk, coupled with cross-border flight-to-safety capital flows. European Safe Bonds (ESBies), a union-wide safe asset without joint liability, would help to resolve these problems. We make three contributions. First,...
Persistent link: https://www.econbiz.de/10011975194
Persistent link: https://www.econbiz.de/10012171837