Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/38910
Authors: 
Candelon, Bertrand
Palm, Franz
Year of Publication: 
2010
Series/Report no.: 
CESifo working paper Fiscal Policy, Macroeconomics and Growth 3001
Abstract: 
The potential mutation of the Sub-Prime banking crisis into a sovereign debt one in Euro area countries is investigated. After reviewing the criteria used to measure the debt vulnerability, the balance sheet approach (BSA) is presented in order to illustrate the potential connections between these two types of crises. A graphical analysis yields evidence that at the end 2009 the probability of observing a Euro area country defaulting is less likely than six month before. Nevertheless, the serious threats, which concern Greece and Ireland, do not permit us to exclude the occurrence of a contagious, or self-fulfilling, sovereign debt or currency crises in Euro area in the future.
Subjects: 
king crisis
sovereign debt crisis
European Union
JEL: 
E32
F36
Document Type: 
Working Paper

Files in This Item:
File
Size
832.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.