scholarly journals Collective memories on the 2010 European debt crisis

2021 ◽  
pp. 146511652110099
Author(s):  
Laura Arnemann ◽  
Kai A Konrad ◽  
Niklas Potrafke
Keyword(s):  
Survey Data ◽  
Euro Area ◽  
Sense Of Belonging ◽  
Debt Crisis ◽  
International Survey ◽  
Collective Memories ◽  
European Debt Crisis

We examine whether collective memories on the aid and reform programs chosen to handle the 2010 European debt crisis differ between citizens from borrower and lender countries. We use new international survey data for non-experts and experts in member countries of the euro area. The results show that non-experts from borrower and lender countries remember aspects of the programs in different manners; indicating biases for assessments of how the crisis outcomes are perceived in borrower and lender countries. Nation-serving biases may well explain that the 2010 European debt crisis has reduced the sense of belonging rather than bringing European citizens closer together.

scholarly journals Collective Memories on the 2010 European Debt Crisis

2021 ◽  
Author(s):  
Laura Arnemann ◽  
Kai A. Konrad ◽  
Niklas Potrafke
Keyword(s):  
Debt Crisis ◽  
Collective Memories ◽  
European Debt Crisis

Measuring redenomination risks in the Euro area – evidence from survey data

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jens Klose
Keyword(s):  
Survey Data ◽  
Monetary Union ◽  
Euro Area ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Yield Spreads ◽  
Content Type ◽  
Sovereign Bond ◽  
Distributed Lag ◽  
Bond Yield

Purpose This paper aims to introduce a new indicator to measure redenomination risks in Euro area countries. The measure is based on survey data. The influence of this indicator in determining sovereign bond yield spreads is estimated. Design/methodology/approach An autoregressive distributed lag approach is used to estimate the effects of redenomination risks on sovereign bond yields. Additional control variables are added. Findings The results for 10 European Economic and Monetary Union (EMU) countries in the period June 2012 to May 2019 show that the risk of depreciation is almost abandoned for most Euro area countries, i.e. the former crisis countries Ireland and Portugal. If anything an appreciation may occur for some countries once they leave the EMU. The only countries facing depreciation problems once leaving the monetary union are Italy and to some extent Spain. Originality/value With this new indicator, the literature on sovereign bond determination and i.e. on redenomination risks is expanded by an additional approach. Moreover, this study is one of few also looking at the period after the most severe tensions of the sovereign debt crisis in the Euro area in 2012.

scholarly journals Collective Memories on the 2010 European Debt Crisis

2021 ◽  
Author(s):  
Laura Arnemann ◽  
Kai A. Konrad ◽  
Niklas Potrafke
Keyword(s):  
Debt Crisis ◽  
Collective Memories ◽  
European Debt Crisis

Same Story, Different Place?

2018 ◽  
Author(s):  
Viral V. Acharya ◽  
Tim Eisert ◽  
Christian Eufinger ◽  
Christian Hirsch
Keyword(s):  
Banking Sector ◽  
Debt Crisis ◽  
Banking System ◽  
Policy Implications ◽  
Balance Sheets ◽  
System P ◽  
Loan Supply ◽  
European Banking ◽  
European Debt Crisis

This chapter compares the recapitalizations of the Japanese banking sector in the 1990s with those in the ongoing European debt crisis. The analysis points to four main policy implications. First, recapitalizing banks by insuring or purchasing troubled assets alone is not likely to solve the problem of banks’ weak capitalization, as this measure is not able to adjust the extent of the recapitalization to the banks’ specific needs. Second, the amount of the recapitalization should be based on actual capital shortages and not risk-weighted assets to avoid banks decreasing their loan supply. Third, banks should face restrictions regarding the amount of dividends they are allowed to pay out. Finally, banks must be induced to clean up their balance sheets and reduce the amount of bad (non-performing) loans to rebuild confidence in the European banking system.

Eurobonds: Three Lessons from China’s “Debt Centralization/Decentralization” Experience

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Zhiyong An
Keyword(s):  
Moral Hazard ◽  
Euro Area ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Budget Constraint ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Member States ◽  
Institutional Mechanism ◽  
Previous Series

Abstract Eurobonds, dubbed as Coronabonds in the context of the current coronavirus crisis, are being hotly debated among the euro area member states amid the COVID-19 pandemic. The debate is in many ways a retread of the euro area sovereign debt crisis of 2011–2012. As China’s “debt centralization/decentralization” experience is comparable with the introduction of Eurobonds in the European Union (EU) in terms of institutional mechanism design, we review our previous series of studies of China’s “debt centralization/decentralization” experience to shed some light on the Eurobonds debate. We obtain three key lessons. First, the introduction of Eurobonds in EU is likely to soften the budget constraint of the governments of the euro area member states. Second, it is also likely to strengthen the moral hazard incentives of the governments of the euro area member states to intentionally overstate their budget problems. Finally, the magnitudes of the moral hazard effects generated by the introduction of Eurobonds in EU are likely larger than their respective counterparts in China.

Timing Does Matter: Institutional Flaws and the European Debt Crisis

2021 ◽  
pp. 1-24
Author(s):  
Valerio Filoso ◽  
Carlo Panico ◽  
Erasmo Papagni ◽  
Francesco Purificato ◽  
Marta Vázquez Suárez
Keyword(s):  
Debt Crisis ◽  
European Debt Crisis

Consequences of South European Debt Crisis

2013 ◽  
pp. 3-12
Author(s):  
Yu. Kvashnin
Keyword(s):  
Focal Point ◽  
Debt Crisis ◽  
European Countries ◽  
Global Markets ◽  
European Region ◽  
International Specialization ◽  
European Debt Crisis ◽  
Of Greece

Debt crisis in South European region turned out to be the focal point of the European debt crisis. It made explicit fundamental disproportions in the development of the Eurozone, in particular strict division between the Center and the Periphery. After joining to the Eurozone South European countries faced further deterioration of their positions in the global markets and fixing of an unfavorable type of their international specialization. Such situation can be seen most evidently in the case of Greece.

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