Sovereign Risk and Financial Crisis ― The International Political Economy of the Eurozone

Sovereign Risk and Financial Crisis provides an original and timely insight into the role that the domestic and international political economy played in the Eurozone sovereign debt crisis. It combines an innovative theoretical framework with in-depth bond market analysis to highlight the importance of the international and socio-political context for sovereign credibility in financial markets and global investment decisions. It opens up the debate on the influence of international and domestic political dynamics on the origins, unfolding and resolution of financial crisis, in developed democracies as well as in emerging markets. Silvia Pepino demonstrates the importance of the domestic political system, highlighting the role played by socio-political contestation and its interaction with institutional checks and balances. Moreover, the author expands the field of analysis to the international sphere, integrating the study of domestic and international sources of sovereign credibility. Finally, she argues that investment analysis evolves over time, so that the categorisation of sovereign borrowers as either developed democracies or emerging markets may not hold in the longer term.

Dr Silvia Pepino is Senior Adviser at the Bank of England, UK. Previously, she worked at JPMorgan and at leading global macro funds. She has frequently been quoted in the international media. She holds a PhD from the London School of Economics and Political Science, the TRIUM MBA degree from New York University-Stern, HEC Paris and the LSE, and an MSc from Bocconi University in Milan.