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We study central bank interventions in times of severe distress (mid-2010), using a unique bond-level dataset of ECB purchases of Greek sovereign debt. ECB bond buying had a large impact on the price of short and medium maturity bonds, resulting in a remarkable "twist" of the Greek yield curve....
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This paper analyses the determinants and effects of ECB interventions in times of severe distress. We focus on the Greek government bond market in mid-2010 and use a unique new dataset to show, for the first time, what type of bonds the ECB bought. We then explore the short-term effects of ECB...
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The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our analysis suggests that, given EMU's present...
Persistent link: https://www.econbiz.de/10008664981
The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our analysis suggests that, given EMU's present...
Persistent link: https://www.econbiz.de/10008697133
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The euro countries currently experience a severe government debt crisis. Since Greece asked for financial assistance in … employing the government budget constraint. The necessary primary surpluses enabling Greece to finance its government debt … without international support from 2020 onwards are, however, substantial. Therefore, it is very likely that Greece either …
Persistent link: https://www.econbiz.de/10009633802