Gibson, Heather D.; Hall, Stephen G.; Tavlas, George S. - In: Journal of International Money and Finance 31 (2012) 3, pp. 498-516
We discuss the origins of the Greek financial crisis as manifested in the growing fiscal and current-account deficits since euro-area entry in 2001. We then extend a model typically used to explain risk premia to assess the extent to which credit ratings captured these premia. Next, we estimate...