’s handling of the euro crisis. We link models of multiple equilibria with the IMF's experience made in Latin American crises in … Greece. Hence, we argue that the inclusion of the IMF in Europe’s crisis fighting did not completely deliver what had been …

This paper develops a model to interpret the 2012 eurozone crisis and the ECB's policy response. In the model, bank … lending is distorted by debt overhang, banks hold sovereign bonds, and the government guarantees the bailout of bank creditors …. A self-fulfilling pessimistic view of the economy can trigger a banking and sovereign crisis: with pessimistic economic …

This paper develops a model to interpret the 2012 eurozone crisis and the ECB's policy response. In the model, bank … lending is distorted by debt overhang, banks hold sovereign bonds, and the government guarantees the bailout of bank creditors …. A self-fulfilling pessimistic view of the economy can trigger a banking and sovereign crisis: with pessimistic economic …