Today is not the first time Europe has suffered a sovereign-debt crisis. Twenty years ago another crisis happened, passing without notice except amongst those affected, i.e. the Faroe Islands. The islands accumulated too much sovereign debt, eventually getting hit by a crisis much larger in magnitude than even the worst in the ongoing European crisis.
The first sovereign debt crisis in the EU
Jon Danielsson, Hermann Oskarsson, 11 September 2012
Is Italy going to make it?
Nicola Borri, Gianfranco di Vaio, Giuseppe Ragusa, 4 February 2012
The Future of Banking – solving the current crisis while addressing long-term challenges
Thorsten Beck, 25 October 2011
Three years after the Lehman Brothers failure sent shockwaves through financial markets, banks are yet again in the centre of the storm.
Topics: EU institutions, EU policies, Europe's nations and regions, Financial markets, Macroeconomic policy, Politics and economics, Taxation
Tags: banking, capital requirements, euro bonds, Eurozone crisis, financial risks, financial transaction tax, prudential regulation, ring-fencing, sovereign debt crisis
A deadline for solving a deadly Eurozone sovereign debt crisis
Guillermo de la Dehesa, 20 October 2011
Next Sunday the European Council meeting should, once for all, dispel all of investors’ concerns about the Eurozone crisis. If the Council is not able to achieve this, it will cross the final red line of patience, making it very unlikely to ever regain the confidence of investors.
Welcome to phase 2 of the Eurozone (EZ) crisis
Richard Baldwin, 5 September 2011
IMF Chief Christine Lagarde made phase 2 official: "Developments this summer have indicated we are in a dangerous new phase" (Lagarde 2011).
How does sovereign risk affect bank funding conditions? What can policymakers do?
Fabio Panetta, Michael Davies, 26 July 2011
The financial crisis and the subsequent recession have caused a sharp deterioration in public finances across advanced countries, raising concerns about sovereign credit risk.
A debt swap to save Greece and the euro
Avinash Persaud, 18 May 2010
There is a simple way to resolve the Greek problem that will strengthen the euro, not undermine it, will lead international tax payers to recover the $145 billion they have pledged, not lose it, and will not require ambitious institution building in Europe at a time when the electorate is euro-fatigued. The solution requires three critical ingredients.
European Stabilisation Mechanism: Promises, realities and principles
Charles Wyplosz, 12 May 2010
There is much to reflect on following the decisions taken over the last weekend. The most important ones are:
Michael Burda, Stefan Gerlach, 11 May 2010
The plan agreed last weekend in Brussels appears has been received positively by the markets. Unfortunately, it is too early to conclude that it was a success. Future monetary historians will judge whether it was a brilliant move by Eurozone governments which put an end to speculation or the first step down a slippery path to ruin.
Financial Stability beyond Greece: Making the most out of the European Stabilisation Mechanism
Daniel Gros, Thomas Mayer, 11 May 2010
Reflecting on his experience with the multiple financial crises of the 1990s, then-Secretary of the Treasury Larry Summers wrote that policymakers facing a crisis tend to go through a process reminiscent of the five stages of grief (Summers 2000):
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- 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
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood
- Austerity: Too Much of a Good Thing?Corsetti