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Chiesa, G. Sovereign Debt, the Blessing Aspects and the Implications for the Euro Area. Vierteljahrshefte zur Wirtschaftsforschung, 89(1), 9-30. https://doi.org/10.3790/vjh.89.1.9
Chiesa, Gabriella "Sovereign Debt, the Blessing Aspects and the Implications for the Euro Area" Vierteljahrshefte zur Wirtschaftsforschung 89.1, , 9-30. https://doi.org/10.3790/vjh.89.1.9
Chiesa, Gabriella: Sovereign Debt, the Blessing Aspects and the Implications for the Euro Area, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 89, iss. 1, 9-30, [online] https://doi.org/10.3790/vjh.89.1.9
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Sovereign Debt, the Blessing Aspects and the Implications for the Euro Area

Chiesa, Gabriella

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 89 (2020), Iss. 1 : pp. 9–30

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.89.1.9
Language
English
Pages
22
Keywords

Author Details

Gabriella Chiesa, Department of Economics, University of Bologna

  • Gabriella Chiesa holds a Ph.D. in Economics from the London School of Economics and is a professor of Economics at the University of Bologna. She has held positions in several Universities, University of Bologna, Università di Roma Tor Vergata, LUISS Rome, University of Leicester, and has been Research Fellow at the International Monetary Fund, Visiting Professor at the Financial Markets Group of the London School of Economics, at the Economics Department University College and the Economics Department University of Leicester. Her research activity is on financial markets and their interactions with the macroeconomy, with special emphasis on the nature and causes of financial markets’ imperfections, financial intermediation, regulation, central bank interventions and sovereign debt. Her research is published in international journals of Economics and Finance, including Journal of Financial Intermediation, Bulletin of Economic Research, Manchester school, Economic Letters, Journal of Economic Theory, Applied Economic Letters, Open Economies Review.
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Abstract

Summary: The Euro area has a unique monetary authority that governs money creation, but several individual-countries’ sovereign debts that differ in terms of safety. We analyse: i) the interactions between the financial and real sector in such an environment; ii) the role of government bonds as liquidity instruments; iii) whether and how the correlation structure of the sovereign-bonds’ market values affects the portfolio composition of liquidity instruments and prices, and the scope for a debt management policy at the Euro area level.

Table of Contents

Section Title Page Action Price
Sovereign Debt 9
Gabriella Chiesa: 9
 Sovereign Debt, the Blessing Aspects and the Implications for the Euro Area 9
1 Introduction 10
Related Literature 13
2 The Model 14
Assets 14
Firms/Banks 15
2.1 Liquidity Demand and Investment Choice 16
3 Equilibrium: Aggregate Investment, Bond Prices and Spreads 9
4 Multiple Risky Assets and Debt Management Policies 9
4.1 Debt Management 9
5 Conclusions 9
APPENDIX A 10
References 10

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