Although the "financial meltdown" between 2007 and 2009 can be substantially attributed to herding behaviour in the subprime market for credit default swaps, a "mindless" IT implementation of participating financial services providers played a major role in the facilitation of the underlying...

Membership in a currency union is not irreversible. Exit expectations may emerge during sovereign debt crises, because exit allows countries to reduce their liabilities through a currency redenomination. As market participants anticipate this possibility, sovereign debt crises intensify. We...