Title:	The Euro Crisis: Three Essays
Authors:	Steinkamp, Sven
Thesis advisor:	Prof. Frank Westermann
Thesis referee:	Prof. Dr. Valeriya Dinger
Abstract:	This dissertation is a collection of three essays dealing with selected problems of the Euro Area during its most recent crisis. It applies empirical, theoretical, and institutional analyses to gain new insights into many of its financial aspects. The first essay offers an alternative explanation for the surge in government bond spreads. Many researchers attribute this phenomenon to market sentiment and multiple equilibria alone. We show that an often neglected fundamental variable may drive spreads: a decrease in the expected recovery value of private market participants. With an ever-increasing share of crisis countries’ debt held by official creditors, private investors may feel pushed into the position of subordinated creditors. The other two essays both explain the sharp increase in central bank credit from different perspectives. First, from the national perspective, central banks may be confronted with a classical tragedy-of-the-commons problem, which gives rise to an expansionary bias. Second, from the perspective of the ECB, we argue that the empirical patterns surrounding the liquidity provision in December 2011 are reminiscent of a speculative attack on a fixed exchange rate system.
URL:	https://osnadocs.ub.uni-osnabrueck.de/handle/urn:nbn:de:gbv:700-2015011912993
Subject Keywords:	Euro Crisis; Balance of payments crisis; Capital flight; Creditor Seniority; Credit channel; Euro Area; Decentralized monetary policy; Private Sector involvement; Multiple Equilibria; Speculative Attack; Sovereign Debt Crisis; Tragedy of the Commons
Issue Date:	19-Jan-2015
Type of publication:	Dissertation oder Habilitation [doctoralThesis]
Appears in Collections:	FB09 - E-Dissertationen Osnabrück JMCE Award Series

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