Guntram B. Wolff

TL;DR: In this paper, the authors provide empirical evidence of creative accounting in the European Union and find that the SGP rules have induced governments to use stock-flow adjustments, a form of Creative Accounting, to hide deficits.

TL;DR: This paper studied the determinants of euro area sovereign bond spreads since the introduction of the euro and found that an aggregate risk factor is a main driver of spreads, both directly and indirectly by interacting with the size and structure of national banking sectors, suggesting that financial markets perceive a larger risk that governments will have to rescue banks, increasing public debt and therefore sovereign risk.

TL;DR: In this paper, the authors investigate the effects of official fiscal data and creative accounting signals on interest rate spreads between bond yields in the European Union and find that two different measures of creative accounting indeed both increase the spread.

TL;DR: The authors found that the SGP rules have induced governments to use stock-flow adjustments, a form of creative accounting, to hide deficits, especially for the cyclical component of the deficit.

TL;DR: This paper investigated the effect of fiscal institutions such as the strength of the finance minister in the budget process and deficits on interest rate spreads of Eurozone countries and found that deficits significantly increase risk premia measured by relative swap spreads.