Kataryniuk, Iván; Mora-Bajén, Víctor; Pérez, Javier J. - 2021
Sovereign spreads within the European Monetary Union (EMU) arise because markets price-in heterogeneous country … fundamentals, but also re-denomination risks, given the incomplete nature of EMU. This creates a permanent risk of financial … framework of the euro area (“EMU deepening”). To test our hypothesis we build a comprehensive narrative of events (decisions …