Recent events in Europe have illustrated how government defaults can jeopardise domestic bank stability. Growing concerns of public insolvency since 2010 caused great stress in the European banking sector, which was loaded with Euro-area debt (Andritzky 2012).
Banks, government bonds, and default: What do the data say?
Nicola Gennaioli, Alberto Martin, Stefano Rossi, 19 July 2014
Currency intervention as global monetary easing: The case of Japan in 2003-04
Petra Gerlach-Kristen, Robert McCauley, Kazuo Ueda, 7 November 2012
One consequence of monetary easing in major economies most affected by the financial crisis is the subsequent currency appreciation in apparently separate economies that are less affected by the crisis, such as those of Japan, Switzerland, and many emerging economies.
Government bonds and their investors: What are the facts and do they matter?
Jochen Andritzky, 5 August 2012
Prior to the start of the global crisis in late 2008, global imbalances, reserve accumulation and regulatory changes fostered greater cross-border integration of sovereign debt markets as measured by the share of government securities held by non-residents.
In the slipstream of the Greek debt exchange
Jeromin Zettelmeyer, Mitu Gulati, 5 March 2012
One of the most interesting questions arising from the ongoing Greek debt restructuring is what it implies about the feasibility – or lack of feasibility – of ‘voluntary’ debt restructurings.
Tito Boeri, 4 October 2011
Around mid June 2011, the CDS over five-year Italian governments bonds, which measures the cost of insurance against a sovereign default, was about 80 basis points lower than the CDS of the Spanish bonds (bonos) with the same maturity. Today Italian five-year government bonds are insured at 70 basis points above the bonos.
Euro-area sovereign risk during the crisis
Silvia Sgherri, Edda Zoli, 17 November 2009
On the heels of the crisis, sovereign risk premium differentials in the euro area have been widening. Although the perceived risk of default for euro-area countries remains generally low, financial markets appear to have been increasingly discriminating among government issuers while requiring overall higher risk premiums (Figure 1).
Government guarantees on bank funding: Should we extend them into 2010 despite the improved bank profitability and the schemes’ distortionary effects?
Aviram Levy, Fabio Panetta, 3 November 2009
In December 2009, the government guarantee schemes for bank bonds that were adopted last autumn will close to new issuance in many EU countries (with guarantees already issued expiring typically in 2012), unless the authorities decide to extend them.1 These schemes were meant to help banks retain access to wholesale funding in the aftermath of Lehman Brothers&rsquo
A “systemic vulnerability index”: Measuring risk in the asset generation chain
Leonardo Felli, Luca Anderlini, 22 August 2009
Civil aviation is remarkably safe. IATA numbers put the probability of death at roughly one in 7.7 million passenger/flights in 2008. This makes air travel about 120 times less dangerous than car travel in the US, although the numbers are hard to compare.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Cadot, de Melo, 16 June 2014
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- The economics of Scottish independence in an interdependent worldHughes Hallett
- Making city lights shine brighterYusuf, Leipziger
- The euro in the 'currency war'Bénassy-Quéré, Martin
- The roots of shadow bankingPerotti
- What’s wrong with Europe?Baldini, Manasse
- Corporate Finance Theory Symposium19 - 20 September 2014 / Cambridge / Judge Business School, Cambridge University
- International Trade, Finance, and Macroeconomics: Research Frontiers and Challenges for Policy18 - 19 December 2014 / The Bank of England, London / The Bank of England, Centre for Macroeconomics and CEPR