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dc.contributor.authorDe Grauwe, Paulen_US
dc.contributor.authorJi, Yuemeien_US
dc.date.accessioned2012-05-31en_US
dc.date.accessioned2012-06-08T13:57:31Z-
dc.date.available2012-06-08T13:57:31Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/58347-
dc.description.abstractWe test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self-fulfilling liquidity crises than in stand-alone countries. We find evidence that a significant part of the surge in the spreads of the PIGS countries in the Eurozone during 2010-11 was disconnected from underlying increases in the debt to GDP ratios and fiscal space variables, and was the result of negative self-fulfilling market sentiments that became very strong since the end of 2010. We argue that this can drive member countries of the Eurozone into bad equilibria. We also find evidence that after years of neglecting high government debt, investors became increasingly worried about this in the Eurozone, and reacted by raising the spreads. No such worries developed in stand-alone countries despite the fact that debt to GDP ratios and fiscal space variables were equally high and increasing in these countries.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Monetary Policy and International Finance 3821en_US
dc.subject.jelF00en_US
dc.subject.ddc330en_US
dc.subject.keywordEurozoneen_US
dc.subject.keywordmultiple equilibriaen_US
dc.subject.keywordself-fulfilling crisesen_US
dc.subject.stwÖffentliche Anleiheen_US
dc.subject.stwRentenmarkten_US
dc.subject.stwMarktliquiditäten_US
dc.subject.stwZinsdifferenzen_US
dc.subject.stwRisikoprämieen_US
dc.subject.stwFinanzmarktkriseen_US
dc.subject.stwÖffentliche Schuldenen_US
dc.subject.stwGleichgewichten_US
dc.subject.stwEurozoneen_US
dc.subject.stwWelten_US
dc.titleSelf-fulfilling crises in the Eurozone: An empirical testen_US
dc.typeWorking Paperen_US
dc.identifier.ppn716599902en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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