Eurozone between market rates and bank interest rates. We have applied a SUR-ECM model. This methodology allows testing for the … surprisingly, we show that the financial turmoil since October 2008 has drastically affected the interest rate PT in the Eurozone … the homogeneity between the Eurozone members has increased. …

in eurozone countries. We argue that there exist offsetting effects: expectations of bailouts tend to make a given level …'s ability to raise the primary surplus in response to higher debt), and apply it to the eurozone countries, investigating in … fiscal space. We find that in quiet times, CDS and bond rates for eurozone members were below what would be expected given …