Moral Hazard in the Eurozone?
The European sovereign debt crisis, which emerged in 2009, revealed unsustainable fiscal policies among several countries in the Eurozone periphery (Matthews, 2011). In fact, high debt ratios are a potential problem for a majority of the countries in the euro area, reaching an average ratio of 92.8 percent in 2015 (Eurostat, 2015). Theoretically, common pool problems and moral hazard within a mone
