open economy requests a bailout from an international financial institution, it receives a non-defaultable loan of size G … that comes with imposed debt limits. The government endogenously asks for the bailout during recessions and repays it when … the economy recovers. Hence, the bailout acts as an imperfect state contingent asset that makes the economy better off …

The complexity of the Cyprus crisis makes answering the question of the title difficult, while the policy implications … become apparent that the Cyprus economy was headed for a crisis, and (2) Could the crisis have been averted if either public … warning signals for the crisis. These came as early as 2009-2010, much before the Cyprus sovereign was cutoff from …

In the wake of the 2008 financial crisis, the Financial Stability Board (FSB) and the Basel Committee on Banking … interdependence of the Eurozone, with particular emphasis on the case of Greece. We anticipate that this model can be used in regional … fiscal situations beyond the Eurozone. …

The European debt crisis triggered a debate on the lacking components of the EU and EMU integration architecture. Many … Eurozone. Each variant of fiscal integration must be based on sound foundations of fiscal discipline. Market discipline, i … problem. Unfortunately, since 2010, the 'no bail out' principle has been replaced by a policy of conditional bailout of …