... phenomenon (the dependent variable). These combinations, called “common factors”, can be interpreted as latent, non-observable variables. Roberto Tamborini can be contacted at: roberto.tamborini@unitn.it © Emerald Group Publishing Limited 2015 Eurozone debt crisis Models of self-fulfilling...

... procyclically in their rating of sovereign debt in the European Monetary Union (EMU), underestimating sovereign risk in the early years and over-rating the lack of national monetary sovereignty since the onset of the Eurozone debt crisis. Yet, there is little direct evidence for this so far. While CRAs...