This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first
part of the chapter provides a brief historical account of bubbles and financial crisis. The …

This paper reviews empirical and theoretical work on the links between banks and their
governments (the bank-sovereign nexus). How significant is this nexus? What do we know …

A comprehensive look at the enormous growth and evolution of distressed debt markets,
corporate bankruptcy, and credit risk models This Fourth Edition of the most authoritative …

We quantify the role of financial leverage behind the sluggish post-crisis investment
performance of European firms. We use a cross-country firm-bank matched database to …

We show that eurozone bank risks during 2007–2013 can be understood as carry trade
behavior. Bank equity returns load positively on peripheral (Greece, Italy, Ireland, Portugal …

We model a loop between sovereign and bank credit risk. A distressed financial sector
induces government bailouts, whose cost increases sovereign credit risk. Increased …

The European debt crisis has rekindled long-standing debates about the power of finance
and the fraught relationship between capitalism and democracy in a globalized world. Why …

This paper examines the macroeconomic implications of sovereign risk in a model in which
banks hold domestic government debt. News of a future sovereign default hampers financial …

The recent unravelling of the Eurozone's financial integration raised concerns about
feedback loops between sovereign and banking insolvency. This article provides a theory of …

A main puzzle in the sovereign debt literature is that defaults have only minor effects on
subsequent borrowing costs and access to credit. This paper comes to a different …