The fact the markets do not seem to believe it should induce the euro area authorities to be more convincing about such a statement.
2  See, inter alia, Calvo (1988), Servicing the Public Debt: The Role of Expectations, American Economic Review; Alesina, Prati and Tabellini (1989), Public Confidence and Debt Management, and Giavazzi and Pagano (1989), Confidence Crises and Public Debt Management (1989), both in Dornbusch and Draghi (Eds. ), Public debt Management: Theory and History, Cambridge University Press.