example has been cruelly shaken by the EZ (Euro Zone) crisis, originating increasing doubts about the integration process. It … economic policy. Given the enormous private and public debt accumulated in periphery after the single currency inception, and … the crisis, instead of solve it. Such solutions are unlikely to reduce both sovereign and external debt ratios of …

euro area using structural Bayesian vector auto regressions. While cross-border banking sector capital ows receded … presented in this paper shows that a loosening of US monetary policy leads to higher global investment fund in ows to euro area … equities and debt. These in ows do not only imply elevated asset prices, but also coincide with increased debt and equity …

capacities to serve public debt will decline, aggravating a sovereign debt crisis. Debt renegotiations can help to avoid the … costs of austerity. I develop a dynamic stochastic model of sovereign debt with long-term debt, endogenous haircuts and … skill loss during unemployment to study optimal fiscal policy in sovereign debt crises. In a quantitative exercise, I find …