Uhlig, Η., (2013), “Sovereign default risk and banks in Europe’s monetary union”, www.voxeu.org, 5 Σεπτεμβρίου.
EZ banks are more exposed to their own nation’s government bonds than ever. This column argues that Eurozone members can now afford to tell their banks to diversify, but pressure from Germany, Austria, France and the ECB might be necessary. Defusing the pernicious entanglement between the Eurozone’s weak banks and weak sovereigns would reduce the cost of any new crisis and reduce the likelihood of such a crisis occurring.