Schuknecht, Ludger (contributor); … - 2008
introduction of the euro. Using data for bond yield spreads relative to an appropriate benchmark, for the period 1991-2005, we find … the financial markets before EMU as their risk premiums did not respond to fiscal balances. This special status seems to … have disappeared with start of EMU. Monetary union, therefore, imposes more fiscal discipline on German states. In contrast …