How to loosen the banks-sovereign nexus

Paolo Angelini, Giuseppe Grande, 8 April 2014



Sovereign debtors and their national banking systems are closely linked through a range of direct and indirect channels.

Topics: EU institutions, Financial markets
Tags: bank capital, bank regulation, capital requirements, home bias

Foreign investors and crises: There is no safe haven for all seasons

Maurizio Michael Habib, Livio Stracca, 28 February 2014



The resilience of the international status of the US dollar remains surprising (Frankel 2013). At the peak of the global financial crisis which started in the US, in particular in the last quarter of 2008, US treasury yields fell and the US dollar appreciated. This has created the impression of a stronger demand for US securities in general.

Topics: Financial markets, Global crisis
Tags: asset pricing, financial crisis, global crisis, home bias, portfolio flows, reserve currency, risk aversion, safe haven, US

The "Greatest" Carry Trade Ever? Understanding Eurozone Bank Risks

Viral Acharya, Sascha Steffen, 21 April 2013

Vox readers can download CEPR Discussion Paper 9432 for free here.

Journalists are entitled to free DP downloads on request; please contact To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Topics: International finance
Tags: Banking crisis, home bias, regulatory arbitrage, risk shifting, sovereign-debt crisis

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