In light of the global financial crisis, an extensive implementation of fiscal stimulus packages has triggered an enormous soared of public debt in Europe. While grappling with this albatross, the high debt level has aroused the paramount interest of this study casts doubt on the role of...

The current European financial crisis is a triple threat and the austerity measures that have been pursued to tackle it (at least so far) have led to a fiscal trap that slides into a deflationary vortex which, on the one hand, pushes economies into a recession by increasing the number of the...

We analyse euro area investors' portfolio rebalancing during the ECB's Asset Purchase Pro- gramme at the security level. Based on net transactions of domestic and foreign securities, we observe euro area sectors' capital ows into individual securities, cleaned from valuation effects. Our...