Sovereign Risk and Financial Crisis [recurso electrónico] : the International Political Economy of the Eurozone

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. Sovereign Risk and Financial Crisis provides an original and timely insight into the role that the domestic and international political economy played in the Eurozone sovereign debt crisis. It combines an innovative theoretical framework with in-depth bond market analysis to highlight the importance of the international and socio-political context for sovereign credibility in financial markets and global investment decisions. It opens up the debate on the influence of international and domestic political dynamics on the origins, unfolding and resolution of financial crisis, in developed democracies as well as in emerging markets. Silvia Pepino demonstrates the importance of the domestic political system, highlighting the role played by socio-political contestation and its interaction with institutional checks and balances. Moreover, the author expands the field of analysis to the international sphere, integrating the study of domestic and international sources of sovereign credibility. Finally, she argues that investment analysis evolves over time, so that the categorisation of sovereign borrowers as either developed democracies or emerging markets may not hold in the longer term Front Matter....Pages i-viii Sovereign Risk, Politics and the Eurozone Crisis....Pages 1-26 An IPE Framework for Sovereign Risk....Pages 27-52 Bond Spreads, EMU Design and the Run-up to the Crisis....Pages 53-72 The Greek Sovereign Debt Crisis....Pages 73-95 The Irish Sovereign Debt Crisis....Pages 96-120 The International Political Economy of the Eurozone Sovereign Debt Crisis....Pages 121-140 Back Matter....Pages 141-176