While the use of public resources is critical to cushion the impact of the financial crisis on the euro-area economy … perspective, to what extent do movements in euro area sovereign spreads reflect country-specific solvency concerns? In line with … previous studies, the paper suggests that euro area sovereign risk premium differentials tend to comove over time and are …

Sovereign risk premia in several euro area countries have risen markedly since 2008, driving up credit spreads in the … channel.” The model is calibrated to the euro area as of mid-2012. We show that a combination of sovereign risk in one region …

This paper analyzes through what channels the euro crisis has affected firm valuations globally. It examines stock …, particularly in creditor countries with greater bank exposure to peripheral euro countries. Trade linkages with peripheral … countries also played a role, with euro exchange rate movements causing differential effects …