21 Adam, K. and P. Tzamourani (2016), “Distributional consequences of asset price inflation in the euro area",  European Economic Review, Elsevier, Vol. 89(C), pages 172–192. 22 The model follows Ampudia, M., A. Pavlickova, J. Slacalek and E. Vogel (2016), “Household heterogeneity in the  euro area since the onset of the Great Recession”, Journal of Policy Modeling, Elsevier, Vol. 38(1), pages 181– 197.
(SLIDE 6) The crisis has also shown that there are several channels through which deteriorating public finances and worsening sovereign credit risks can spread to the financial sector and affect the credit risk of financial institutions.