We show that euro forward rates are biased predictors of future interest rates. A small part of this bias arises from unexpected changes in interest rates, while a larger part is explained by the forward premia, which are generally not time-varying. We estimate the the 3-month forward premia for...

This paper aims to identify the determinants behind the different evolution of sovereign bond yields in euro area countries for the period of the current crisis. Up to the time of the collapse of Lehman Brothers, global risk premium was the main driver of spreads. Afterwards, the relevance of...

Spain faces the highest unemployment rate among the European Union countries (22.2%), and Portugal one of the lowest (7.3%). However, superficially, these two countries share common labour market features: they both have the most stringent job security rules in the OECD, the architecture of...