The European Sovereign Debt Crisis: What Have We Learned?

29 Pages Posted: 6 Apr 2016 Last revised: 12 Jan 2017

See all articles by Roman Kräussl

Roman Kräussl

Bayes Business School (formerly Cass); Hoover Institution, Stanford University

Thorsten Lehnert

University of Luxembourg

Denitsa Stefanova

Universite du Luxembourg

Date Written: March 1, 2016

Abstract

This paper sets the background for the Special Issue of the Journal of Empirical Finance on the European Sovereign Debt Crisis. It identifies the channel through which risks in the financial industry leaked into the public sector. It discusses the role of the bank rescues in igniting the sovereign debt crisis and reviews approaches to detect early warning signals to anticipate the buildup of crises. It concludes with a discussion of potential implications of sovereign distress for financial markets.

Keywords: Sovereign debt crisis, systemic risk, contagion, bank bail-outs, financial regulation

JEL Classification: G01, G15, G21, G28

Suggested Citation

Kraeussl, Roman and Lehnert, Thorsten and Stefanova, Denitsa, The European Sovereign Debt Crisis: What Have We Learned? (March 1, 2016). Journal of Empirical Finance, Vol. 38(A), 2016, Available at SSRN: https://ssrn.com/abstract=2759201

Roman Kraeussl

Bayes Business School (formerly Cass) ( email )

Hoover Institution, Stanford University ( email )

Stanford, CA 94305
United States

Thorsten Lehnert

University of Luxembourg ( email )

6, rue Coudenhove-Kalergi
Luxembourg, L-1359
Luxembourg

Denitsa Stefanova (Contact Author)

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

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