This paper studies the impact of credit rating agency (CRA) announcements on the value of the Euro and the yields of … French, Italian, German and Spanish long-term sovereign bonds during the culmination of the Eurozone debt crisis in 2011 …-2012. The employed GARCH models show that CRA downgrade announcements negatively affected the value of the Euro currency and …

potential threat to sovereign bond market stability in the euro area; these markets had disintegrated during the “euro crisis …“. While several reforms related to the institutional architecture of the euro area, such as major parts of the banking union …, have been implemented successfully, the eminent design feature of the euro area that nourishes fragmentation and flight to …

This paper investigates the causes behind the euro debt crisis, particularly Germany's role in it. It is argued that …-area competitiveness and current account imbalances, and the corresponding debt flows that such imbalances give rise to, are at the heart … threaten the euro's survival. The crisis in Euroland poses a global "too big to fail" threat, and presents a moral hazard of …