Saving the euro: self-fulfilling crisis and the 'Draghi put'
Saving the euro: self-fulfilling crisis and the 'Draghi put'
background briefing series,political economy,policy briefing
Marcus Miller, The CAGE Background Briefing Series No. 37, August 2015
Like banks, indebted governments can be vulnerable to self-fulfilling financial crises. This column applies this insight to the Eurozone sovereign debt crisis, and explains why the ECB’s Outright Monetary Transactions policy reduced sovereign bond spreads in the Eurozone.
Political Economy