Credit Supply and the Rise in Sovereign Debt Risk in the Eurozone

  • Pierluigi Morelli
  • Giovanni B. Pittaluga
  • Elena Seghezza
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


Since the financial crisis of 2007–2008, much has been written about the consequences of the fragility of the banking systems of several countries, as that fragility affects these countries’ deficit and debt and the resulting crisis. The need to save the banking system from a severe insolvency crisis has prompted the governments of many countries to support their economies by implementing expansionary fiscal policies, with the state taking on the losses of banks in difficulty. In many cases this has resulted in a significant increase in public deficits and debts.


Central Bank Total Asset Banking System Credit Default Swap Government Bond 
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Copyright information

© Pierluigi Morelli, Giovanni B. Pittaluga and Elena Seghezza 2013

Authors and Affiliations

  • Pierluigi Morelli
    • 1
  • Giovanni B. Pittaluga
    • 2
  • Elena Seghezza
    • 1
  1. 1.Research DepartmentItalian Bank Association (ABI)Luxembourg
  2. 2.Genoa UniversityItaly

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