Euro Conditionality Hinges on Positive Convergence

Abstract The present cocktail of a bleak economic outlook combined with high inflation and rising interest rates has raised questions as to whether a new euro debt crisis might emerge. Euro area sovereign spreads have widened, but not to “unwarranted” levels, unlike the situation that prevailed duri...

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Main Author: Michala Marcussen
Format: Article
Language:English
Published: Sciendo 2022-10-01
Series:Intereconomics
Online Access:https://doi.org/10.1007/s10272-022-1081-2
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author Michala Marcussen
author_facet Michala Marcussen
author_sort Michala Marcussen
collection DOAJ
description Abstract The present cocktail of a bleak economic outlook combined with high inflation and rising interest rates has raised questions as to whether a new euro debt crisis might emerge. Euro area sovereign spreads have widened, but not to “unwarranted” levels, unlike the situation that prevailed during the European debt crisis. A replay of the funding fears, which drove the euro area debt crisis a decade ago, seems unlikely today with the extensive toolkit now in place.
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spelling doaj-art-c8d0754331c24f98bfdb6732d5310d732025-08-20T03:05:10ZengSciendoIntereconomics1613-964X2022-10-0157528829210.1007/s10272-022-1081-2Euro Conditionality Hinges on Positive ConvergenceMichala Marcussen0Societe GeneraleAbstract The present cocktail of a bleak economic outlook combined with high inflation and rising interest rates has raised questions as to whether a new euro debt crisis might emerge. Euro area sovereign spreads have widened, but not to “unwarranted” levels, unlike the situation that prevailed during the European debt crisis. A replay of the funding fears, which drove the euro area debt crisis a decade ago, seems unlikely today with the extensive toolkit now in place.https://doi.org/10.1007/s10272-022-1081-2
spellingShingle Michala Marcussen
Euro Conditionality Hinges on Positive Convergence
Intereconomics
title Euro Conditionality Hinges on Positive Convergence
title_full Euro Conditionality Hinges on Positive Convergence
title_fullStr Euro Conditionality Hinges on Positive Convergence
title_full_unstemmed Euro Conditionality Hinges on Positive Convergence
title_short Euro Conditionality Hinges on Positive Convergence
title_sort euro conditionality hinges on positive convergence
url https://doi.org/10.1007/s10272-022-1081-2
work_keys_str_mv AT michalamarcussen euroconditionalityhingesonpositiveconvergence