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Banking fragility rooted in justice failures Evidence from Ukraine
Policy Contribution

ECB Policy and Eurozone Fragility: Was De Grauwe Right?

by Ana-Maria Fuertes / Elena Kalotychou / Orkun Saka
20 June 2014

ECB Policy and Eurozone Fragility: Was De Grauwe Right?

Ana-Maria Fuertes / Elena Kalotychou / Orkun Saka

The authors test Paul De Grauwe’s eurozone fragility hypothesis using a time window around the announcement of the Outright Monetary Transactions (OMT) programme. The findings reveal significant contagion from Spain to other eurozone countries, but solely during the pre-announcement period. The authors conclude that in this case the OMT programme has succeeded in mitigating the self-fulfilling dynamics within the eurozone.

Ana-Maria Fuertes is Professor in Financial Econometrics at Cass Business School, City University London; Elena Kalotychou is a Senior Lecturer at Cass Business School, and Orkun Saka is a Doctoral Researcher at Cass Business School, City University London.


About the Authors


  • Author
    Ana-Maria Fuertes
    Ana-Maria Fuertes
  • Author
    Elena Kalotychou
    Elena Kalotychou
  • Author
    Orkun Saka
    Orkun Saka
ECB Policy and Eurozone Fragility: Was De Grauwe Right?
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