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I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form expectations about bank risk-taking and demand a...
Persistent link: https://www.econbiz.de/10011959253
I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form expectations about bank risk-taking and demand a...
Persistent link: https://www.econbiz.de/10011978544
Persistent link: https://www.econbiz.de/10011293364
The present study examines the impact of the current fiscal crisis in the euro area on the Greek banking system and the measures adopted to preserve its stability. It is divided into 3 Sections:(a) Section 1 contains an overview of the causes of the recent (2007-2009) international financial...
Persistent link: https://www.econbiz.de/10012993823
– Japan, Brazil, USA, Eurozone, Russia, China – have managed to overcome the consequences completely. However, the degree to … which the GFC's impact has been neutralized varies considerably, and the comparison between the eurozone and the two other … unemployment – by the fourth quarter of 2018 the unemployment rate in the eurozone was more that 3 times higher than Japan's rate …
Persistent link: https://www.econbiz.de/10012850191
policy convergence in the Eurozone after 2010 if it better examined the interdependencies between banks and sovereigns … becomes a pivotal mechanism for fiscal consolidations as the singular response to the ongoing Eurozone crisis. The implication … of our argument is that recent fiscal policy in the Eurozone cannot be adequately understood without analyzing the …
Persistent link: https://www.econbiz.de/10013088500
In European countries recently hit by a sovereign debt crisis, the share of domestic sovereign debt held by the national banking system has sharply increased, raising issues in their economic and financial resilience, as well as in policy design. This paper examines these issues by analyzing the...
Persistent link: https://www.econbiz.de/10012993780
Along time the European Union (EU) has been pointed as the most succeeded example of regional integration. Now, this example has been cruelly shaken by the EZ (Euro Zone) crisis, originating increasing doubts about the integration process. It is evident that the proposed solutions for attacking...
Persistent link: https://www.econbiz.de/10011515832
Previous work has documented a greater sensitivity of long-term government bond yields to fundamentals in Euro area stress countries during the euro crisis, but we know little about the driver(s) of regimeswitches. Our estimates based on a panel smooth threshold regression model quantify and...
Persistent link: https://www.econbiz.de/10013248886
This paper addresses the following questions. Is there evidence of financial contagion in the Eurozone? To what extent … matter concerning the Euro Zone. Second, differences in vulnerability to contagion within the Eurozone are even more … remarkable: the core Eurozone members become less vulnerable to EUZ contagion, possibly due to a safe-heaven effect, while …
Persistent link: https://www.econbiz.de/10011731038