{"id":3991,"date":"2012-06-23T08:49:04","date_gmt":"2012-06-23T06:49:04","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=3991"},"modified":"2012-06-23T08:49:04","modified_gmt":"2012-06-23T06:49:04","slug":"self-fulfilling-crises-in-the-eurozone-an-empirical-test","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/self-fulfilling-crises-in-the-eurozone-an-empirical-test\/","title":{"rendered":"Self-Fulfilling Crises in the Eurozone: An Empirical Test"},"content":{"rendered":"<p>\u00a0<a href=\"http:\/\/www.ceps.eu\/author\/paul-de-grauwe\" target=\"_blank\">De Grauwe, Paul<\/a>.<\/p>\n<p>This paper tests the hypothesis that 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 (Portugal, Ireland, Greece and Spain) 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.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae: <\/strong>CEPS<\/p>\n<p><a href=\"http:\/\/www.ceps.eu\/book\/self-fulfilling-crises-eurozone-empirical-test\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0De Grauwe, Paul. This paper tests the hypothesis that 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 (Portugal, Ireland, Greece and Spain) in the eurozone during [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,32],"tags":[26,27],"class_list":["post-3991","post","type-post","status-publish","format-standard","hentry","category-19","category-32","tag-26","tag-27"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/3991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/comments?post=3991"}],"version-history":[{"count":1,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/3991\/revisions"}],"predecessor-version":[{"id":3992,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/3991\/revisions\/3992"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=3991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=3991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=3991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}