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Monetary Policy In The Context Of The European Sovereign Debts


  • CRISTE, Adina

    (Centre for Financial and Monetary Research “Victor Slăvescu”, Romanian Academy)


The crisis of the sovereign debts in Europe challenged the monetary policy of the European Central Bank (ECB) to maintain price stability and to encourage the credits for economic activities under the conditions of a rather uncertain environment with precautious investors and under the conditions of faltering fiscal sustainability of the Euro Area member states. The paper approaches the issue of the monetary effects generated by the crisis of the sovereign debts within the Eurozone starting with a brief description of the European sovereign bonds market, starting with the period before the euro project implementing. The particularities of the monetary transmission mechanism caused by the effects of the sovereign bonds crisis reveal specific constraints of the current monetary policy. The article is subject to the complex issues related to the monetary integration process and the operation of the optimum currency areas.

Suggested Citation

  • CRISTE, Adina, 2012. "Monetary Policy In The Context Of The European Sovereign Debts," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 16(4), pages 23-34.
  • Handle: RePEc:vls:finstu:v:16:y:2012:i:4:p:23-34

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    References listed on IDEAS

    1. Luciana Barbosa & Sónia Costa, 2010. "Determinants of sovereign bond yield spreads in the euro area in," Working Papers w201022, Banco de Portugal, Economics and Research Department.
    2. von Hagen, Jürgen & Schuknecht, Ludger & Wolswijk, Guido, 2011. "Government bond risk premiums in the EU revisited: The impact of the financial crisis," European Journal of Political Economy, Elsevier, vol. 27(1), pages 36-43, March.
    3. Edda Zoli & Silvia Sgherri, 2009. "Euro Area Sovereign Risk During the Crisis," IMF Working Papers 09/222, International Monetary Fund.
    4. Salvador Barrios & Per Iversen & Magdalena Lewandowska & Ralph Setzer, 2009. "Determinants of intra-euro area government bond spreads during the financial crisis," European Economy - Economic Papers 2008 - 2015 388, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    More about this item


    price stability; monetary transmission mechanism; sovereign bonds;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt


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