An op-ed by Profs Viral Acharya, Itamar Drechsler & Philipp Schnabl on euro bank & sovereign risks
— April 15, 2012
Excerpt from VoxEU -- "The deadliest aspect of the Eurozone crisis is the tripwire linking the riskiness of banks and governments. This column provides evidence of the link and explains how it arose. It argues that given the near-chaos-like interaction, the zero risk weights on sovereign bonds should be revisited"