The recent world economic crisis showed very clearly that
financial crises and sovereign defaults are severe threats to
economic and social prosperity. In addition, it became apparent
that currency crises and banking crises often occur together and
are closely related to sovereign debt crises and defaults.
The present book contains new research on various important
issues related to financial crises and sovereign default risk by
leading experts in the field. The book discusses new modelling
approaches to financial crises, defaults and their
interdependencies. It also sheds light on the consequences of
different sorts of crises for the trust in the institutions which
are concerned with managing them. Moreover, it provides discussions
of several institutional features of the EMU and the world
financial system and in particular the risks inherent in these
institutions. The book also includes interesting suggestions for
solving crises and improving financial stability.
General
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