The euro-area sovereign debt crisis was characterized by feedback loops between (1) sovereign bond ratings and sovereign spreads in single jurisdictions and (2) sovereign spreads and ratings among jurisdictions. One explanation of this circumstance is that the ECB was unable to perform the role...

The euro-area financial crisis that erupted in 2009 was marked by negative confidence effects that had both domestic and international ramifications. Domestically, bank lending declined sharply. Internationally, the demand for the euro as a reserve currency fell precipitously. We investigate the...

In this paper we anaIyse price level differences in the euro area focusing on the impact of market structure and exploring how consumer behaviour can influence firms’ pricing. We consider two elements of market structure: producer market competition structure and the less explored structure of...