Some observers – often with great conviction – see the European crisis through the lens of public finance (Alessandrini et al. 2012). They see the key source of the problem as the inherent inability of past governments (many in the periphery, and possibly soon even some in the core) to live within their means.
Sovereigns versus banks: Crises, causes and consequences
Òscar Jordà, Moritz Schularick, Alan Taylor, 18 October 2013
What is the risk of European sovereign debt defaults? Fiscal space, CDS spreads and market pricing of risk
Joshua Aizenman, Yothin Jinjarak, Michael M Hutchison, 8 September 2011
Spiralling risk premiums on sovereign debt has had policymakers complaining about market inefficiency, particularly along Europe’s periphery.
Fiscal space in advanced countries
Enrique G. Mendoza, Atish R Ghosh, Jonathan D Ostry, 8 March 2011
Public debt sustainability and sovereign default in advanced economies used to be a non-issue. Of course there were fiscal challenges, demographic pressures being the obvious one, but these were issues for the long term, not the here and now. If the topic came up at all, most people associated it with developing or emerging market countries – not advanced economies.
De facto fiscal space and fiscal stimulus: Definition and assessment
Joshua Aizenman, Yothin Jinjarak, 4 December 2010
The dire outlook of the global economy in the second half of 2008 necessitated unprecedented fiscal expansions in most OECD and emerging-market countries (WEO 2009). The resultant fiscal stimuli focused attention on the degree to which countries possessed “fiscal space” and on ways to apply it in a counter-cyclical manner.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- 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
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013