Publication
Jan 2012
This paper finds evidence that a significant part of the surge in the spreads of the PIGS countries (Portugal, Ireland, Greece and Spain) in the eurozone in 2010-11 was the result of negative market sentiments. The authors find evidence that after years of neglecting high government debt, investors became increasingly worried about this in the eurozone, and reacted by raising the spreads.
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English (PDF, 22 pages, 1.0 MB) |
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Author | Paul De Grauwe, Yuemei Ji |
Series | CEPS Working Documents |
Issue | 361 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2012 Centre for European Policy Studies (CEPS) |