The Eurozone: Saved by the Bell
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Twomey, C. (2012) 'The Eurozone: Saved by the Bell' Banking Ireland (Journal of the Institute of Bankers in Ireland), 116 (1) .
The article focuses on the European Central Bank (ECB) as a lender of last resort (LOLR) for the government bond markets of the Eurozone. It states that the increase of bond yields in the European crisis changed the liquidity crisis to solvency crisis. Belgian macroeconomist Paul De Grauwe said that ECB is the only Eurozone's institution that can perform as a LORL, however, the ECB does not want to get involved, wherein its doctrinal persuasion and legal mandate are the roots of its hesitation.