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The euro area crisis was characterised by a negative feedback loop between banks and sovereigns. The paper aims to indicate the genesis of this phenomenon and to determine the scale of its operation during the crisis and post-crisis conditions, as well as to identify the threats it brings. In...
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, using bond yield spreads for the major eurozone countries. By emphasizing the use of two econometric approaches based on … we have witnessed over the last years come from larger shocks propagated with higher intensity across Europe. …
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