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Despite a formal 'no-bailout clause', we estimate significant net present value transfers from the European Union to … recent Eurozone crisis. We propose a model to analyze and understand bailouts in a monetary union, and the large observed … differences across countries. We characterize bailout size and likelihood as a function of the economic fundamentals (economic …
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/ Andrea Rieck and Ludger Schuknecht -- 6. On some recent proposals of public debt restructuring in the Eurozone / Ernesto …
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This paper sets the background for the Special Issue of the Journal of Empirical Finance on the European Sovereign Debt Crisis. It identifies the channel through which risks in the financial industry leaked into the public sector. It discusses the role of the bank rescues in igniting the...
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