Sovereign Risk and Financial Crisis

This book provides an original and timely insight into the role that the domestic and international political economy played in the Eurozone sovereign debt crisis, combining an innovative theoretical framework with in-depth bond market analysis.

"Silvia Pepino's arguments are highly appreciable and well-researched. The methodologies that she employs and the empirical evidences that she presents qualify the work to claim an inimitable status." - Rajeesh Kumar, Jawaharlal Nehru University, India

"Sovereign debt crises are relatively rare events, particularly among advanced democracies. In this careful and original study of the pivotal Eurozone crisis, Silvia Pepino shows in detail how domestic and international political factors shape market perceptions of sovereign risk. This book should be read by all those interested in how markets and politics interrelate." - Andrew Walter, University of Melbourne, Australia

"This is an important, as well as obviously timely, advance in our understanding of investor perceptions of sovereign credit risk in general and the Euro area crisis in particular. By demonstrating that the focus of investment analysis can change over time, and broaden as default becomes a possibility, Pepino contributes to a necessary move beyond the developed / emerging market dichotomy." - Iain Hardie, University of Edinburgh, UK

"The North-Atlantic financial crisis of 2007-8 has thrown up new research questions. One such question is how high-income countries within a hard currency area could become the target of speculative financial attacks typical of emerging markets. This book makes a timely and well-researched contribution to answering this question. It provides evidencethat political news played more of a role in these attacks than received wisdom has it." - Waltrauld Schelkle, London School of Economics and Political Science, UK

Autorentext
Dr Silvia Pepino is Senior Adviser at the Bank of England, UK. Previously, she worked at JPMorgan and at leading global macro funds. She has frequently been quoted in the international media. She holds a PhD from the London School of Economics and Political Science, the TRIUM MBA degree from New York University-Stern, HEC Paris and the LSE, and an MSc from Bocconi University in Milan.

Inhalt
PART I: SOVEREIGN RISK, POLITICS AND THE EUROZONE CRISISi. Introduction

1. Sovereign Risk, Developed Democracies and Financial Crisis
2. Sovereign Risk and the Debt Crisis in the Eurozone
3. The Focus of the Book
4. The Approach in the Book

5. Outline of the Book

   PART II: BOND SPREADS, EMU DESIGN AND THE RUN-UP TO THE CRISIS

6. Introduction
7. Adaptive Markets and Sovereign Risk Models
8. The Political Sources of Sovereign Credibility in Financial Markets
9. International Influences on Sovereign Risk Perceptions

10. Theoretical Pillars

    PART III: BOND SPREADS, EMU DESIGN AND THE RUN-UP TO THE CRISISi. Introduction

11. Government Bond Spreads and EMU Design
12. Greece and Ireland: The Macro and Political Economy

13. Politics and Spreads Before 2008

    PART IV: THE GREEK SOVEREIGN DEBT CRISIS

14. Introduction
15. Evolving Investment Analysis and the Greek Sovereign Debt Crisis
16. Domestic Political Economy of the Greek Sovereign Debt Crisis
17. International Political Economy of the Greek Sovereign Debt Crisis

18. Key results from the Greek Case Study

    PART V: THE IRISH SOVEREIGN DEBT CRISIS

19. Introduction
20. Evolving Investment Analysis and the Irish Sovereign Debt Crisis
21. Domestic Political Economy of the Irish Sovereign Debt Crisis
22. International Political Economy of the Irish Sovereign Debt Crisis

23. Key results from the Irish Case Study

    PART VI: THE IPE OF THE EUROZONE SOVEREIGN DEBT CRISIS

24. Introduction
25. Lessons from the Greek and Irish Cases
26. Application to other Eurozone Sovereigns
27. Next Steps in IPE Research
28. Implications for Policy
29. Final Remarks