IDEAS home Printed from https://ideas.repec.org/a/ecb/ecbrbu/201400201.html
   My bibliography  Save this article

The sovereign-bank nexus

Author

Listed:
  • Kalin Nikolov
  • Alexander Popov

Abstract

The sovereign debt crisis which erupted in the euro area in 2010 affected the global banking system and highlighted the close links between the fates of sovereigns and banks. It also prompted interventions by governments and central banks on a scale comparable to the programmes implemented during the financial crisis of 2008-09 in order to stabilise the banking sector. This article tackles two questions which are currently high on the policy agenda: What are the channels through which sovereign-bank linkages amplify twin fiscal/banking crises? And have tensions in euro area government bond markets been transmitted internationally through the bank lending channel? JEL Classification: E6

Suggested Citation

  • Kalin Nikolov & Alexander Popov, 2014. "The sovereign-bank nexus," Research Bulletin, European Central Bank, vol. 20, pages 2-4.
  • Handle: RePEc:ecb:ecbrbu:2014:0020:1
    as

    Download full text from publisher

    File URL: http://www.ecb.europa.eu/pub/pdf/other/researchbulletin20en.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. PETER McADAM & ALPO WILLMAN, 2013. "Technology, Utilization, and Inflation: What Drives the New Keynesian Phillips Curve?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(8), pages 1547-1579, December.
    2. Sebastian Schmidt, 2013. "Optimal Monetary and Fiscal Policy with a Zero Bound on Nominal Interest Rates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(7), pages 1335-1350, October.
    3. Dieppe, Alistair & González Pandiella, Alberto & Willman, Alpo, 2012. "The ECB's New Multi-Country Model for the euro area: NMCM — Simulated with rational expectations," Economic Modelling, Elsevier, vol. 29(6), pages 2597-2614.
    4. Dieppe, Alistair & Pandiella, Alberto González & Hall, Stephen & Willman, Alpo, 2013. "Limited information minimal state variable learning in a medium-scale multi-country model," Economic Modelling, Elsevier, vol. 33(C), pages 808-825.
    5. Olivier Blanchard & Francesco Giavazzi, 2002. "Current Account Deficits in the Euro Area: The End of the Feldstein Horioka Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(2), pages 147-210.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    sovereign debt crisis;

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecb:ecbrbu:2014:0020:1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications). General contact details of provider: http://edirc.repec.org/data/emieude.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.