global financial crisis has fiscal origins. Almost all developed countries suffer from an excessive public debt burden that …

Financial market interdependence has been at the epicenter of the crisis in the euro area. This paper tests for the … euro area shocks from country-specific shocks. Financial contagion has been widespread during the crisis in the euro area … between the core and the periphery of the euro area. Global and euro area shocks have been important drivers of sovereign bond …

Financial market interdependence has been at the epicenter of the crisis in the euro area. This paper tests for the … the standard contagion test of Favero and Giavazzi (2002) with a narrative approach to separate out global and euro area … shocks from country-specific shocks. Financial contagion has been widespread during the crisis in the euro area. Three …

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 … ; Sovereign Debt Crisis ; Competitiveness Imbalances ; Fiscal Transfers ; Bailouts ; Austerity …

depressed euro that boosted German extra-area exports. But the crisis that started in Euroland's so-called periphery has … meanwhile reached the core. With pro-euro sentiments dwindling fast across the European Union (EU), the future of the euro … turn out to be a double-edged sword. In case of a euro breakup, swift appreciation of the new deutschmark would abruptly …

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 … the crisis is not primarily a “sovereign debt crisis” but rather a (twin) banking and balance of payments crisis. Intra …

The Euro zone debt crisis has indeed jeopardized the recovery plans put in place post global crisis by regulators … on the topic, analyses the causes for sovereign debt crisis and presents the implications of sovereign debt crises and …

current account imbalances in the Euro Area and test whether the introduction of the European Monetary Union has aggravated … these imbalances. For these purposes two alternative criteria for the assessment of external debt sustainability are … properties of the stochastic process of the debt-to-GDP ratio. The Bohn test is applied using the pooled mean-group estimator …

Some euro area countries accumulated large and persistent external imbalances during the upswing, revealing important … and surpluses were larger than appear justified by economic fundamentals. The massive debt accumulation made deficit … the euro area. In some countries, fiscal policy in the past decade failed to counter and sometimes aggravated these …

The euro area crisis was less a crisis of the euro than a crisis of the Maastricht doctrine. The latter was based on a … triple ban: no monetization of fiscal deficits, no bail-out, no sovereign default. The euro architecture was also based on a … strict division of tasks: the European Central Bank would stabilize prices in the euro area as a whole, whereas national …