Umfang:
Online-Ressource (49 p)
Ausgabe:
Online-Ausg.
ISBN:
1475513445
,
9781475513448
Serie:
IMF Working Papers Working Paper No. 13/227
Inhalt:
Sovereign risk premia in several euro area countries have risen markedly since 2008, driving up credit spreads in the private sector as well. We propose a New Keynesian model of a two-region monetary union that accounts for this “sovereign risk channel.” The model is calibrated to the euro area as of mid-2012. We show that a combination of sovereign risk in one region and strongly procyclical fiscal policy at the aggregate level exacerbates the risk of belief-driven deflationary downturns. The model provides an argument in favor of coordinated, asymmetric fiscal stances as a way to prevent selffulfilling debt crises
Weitere Ausg.:
Erscheint auch als Druck-Ausgabe Corsetti, Giancarlo Sovereign Risk and Belief-Driven Fluctuations in the Euro Area Washington, D.C. : International Monetary Fund, 2013 ISBN 9781475513448
Sprache:
Englisch
DOI:
10.5089/9781475513448.001
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