Systemic Risk, Sovereign Yields and Bank Exposures in the Euro Crisis

By Niccolò Battistini, M. Pagano, S. Simonelli. 2014

189 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/0489f9e45b612eae54c4a5abc70a0d94d3b3cec5

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Citations in the corpus

ESBies: Safety in the Tranches (2017, background): “As Figure 1 shows, this home bias became particularly pronounced among banks in vulnerable countries during the crisis, reflecting distorted incentives (Battistini et al., 2014).”
Deadly Embrace: Sovereign and Financial Balance Sheets Doom Loops (2018, background): “It is important to keep in mind that the decompositionW0 = E0−R0 in (4) as well as the alternative expression (7) for R0 make use of the martingale property of equilibrium prices (2).”
The 'Greatest' Carry Trade Ever? Understanding Eurozone Bank Risks (2013, unknown): “the euro and currencies in the EU (Battistini et al., 2013).”
The Invisible Hand of the Government: Moral Suasion during the European Sovereign Debt Crisis (2019, unknown): “While a number of recent papers present evidence consistent with this idea (e.g., Battistini et al., 2014; Acharya and Steffen, 2015; De Marco and Macchiavelli, 2016; Horvath et al., 2015; Altavilla et al., 2017; Ohls, 2017; Becker and Ivashina, 2018), it is intrinsically difficult to tightly…”
Bank Exposures and Sovereign Stress Transmission (2017, unknown): “Battistini, Pagano, and Simonelli (2014) argue that sovereign stress heightens this incentive, generating a positive relationship between sovereign yields and banks’ holdings of domestic debt, and refer to this prediction as the “moral suasion” hypothesis, a label also used in subsequent work.”
Inspecting the Mechanism: Leverage and the Great Recession in the Eurozone (2017, background): “Battistini et al. (2014) argue that the perceived risk of a eurozone breakup is a key driver of financial fragmentation during the crisis. Schmitt-Grohe and Uribe (2012) emphasize the role of downward wage rigidity. Some papers also compare and describe the specific circumstances of individual count”