Previous work has documented a greater sensitivity of long-term government bond yields to fundamentals in Euro area … stress countries during the euro crisis, but we know little about the driver(s) of regime-switches. Our estimates based on a … swap index: the higher the bank credit risk, the higher the extra premium on fundamentals; 3) after ECB President Draghi …

for the eurozone. The triple euro area crisis showed the costly consequences of ignoring the "safety trilemma". Keeping a … capital mobility and maintaining economic and financial stability in a monetary union. The euro area needs a single safe … countries must therefore act as the joint sovereign behind the euro and choose from two options. First, they could establish a …

is described using a stochastic regime-switching model; second, the euro area governments' responses to uncertain … macroeconomic policies in Greece are considered. The model's mechanism and assumptions allow either for a Grexit from the euro area … understand key drivers of the long-winded negotiations between the Syiza government and the euro area governments …

This paper considers the issue of sovereign debts in the Eurozone. The reasons for the reduction of public debt, which …

cross-border exposures.The analysis of the data shows that sovereign risk mainly concentrates in the EU countries. The EWMA … the Eurozone. The adjusted correlation analysis confirms that Greece and other PIIGS (even Spain and Italy) have lower …

the convenience yield on European-wide safe assets, the EDMA could issue up to 15 percent of euro area GDP, helping to put … national debts on a sounder trajectory. The analysis suggests that, without mutualization, some euro area countries are likely …

matter concerning the Euro Zone. Second, differences in vulnerability to contagion within the Eurozone are even more …This paper addresses the following questions. Is there evidence of financial contagion in the Eurozone? To what extent … sovereign risk factor, a European sovereign risk factor and a Financial intermediaries risk factor. Our main findings are as …

Ireland had given up ist own currency in favor of what is essentially a foreign currency - the euro, which is issued by the … European Central Bank (ECB). Every euro issued in Ireland is ultimately convertible, one to one, to an ECB euro. There is … neither the possibility of depreciating the Irish euro nor the possibility of creating ECB euros as necessary to meet demands …

This research note discusses the Euro crisis in Greece in light of the referendum of July the 5th. It lays out the …