Ghosh, Atish R.; Ostry, Jonathan D.; Qureshi, Mahvash S. - In: Journal of International Money and Finance 34 (2013) C, pp. 131-163
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 …
