The Crime of Fiscal Neglect and Punishment of High Rates – A Panel Study for EMU
This paper examines long-term interest rates and fiscal liabilities within EMU in the context of the recent sovereign debt crisis; where Greece, Ireland, Italy, Portugal and Spain faced rising interest rates in contrast to the rest of the EMU. An assessment of the short and long-run properties of long rates, fiscal deficits and government debt are estimated for 11 EMU countries in the time span 19