DWS Global Financial Institute, a think tank set up by Germany’s DWS Investments, has partnered with
Professor Bodo Herzog of ESB Business School,
Reutlingen University, to offer what DWS says is a
novel view of what has caused the eurozone debt crsis.

In a DGFI white paper, Professor Herzog, working with DWS
Investments’ chief economist Johannes Müller, examine the crisis by looking at
how implicit debt, especially foreign debt holdings, have had significant
negative effects on the domestic growth of European states. He also offers a
careful analysis of the region’s current account imbalances and economic
competitiveness.

To view the white paper in full, click here.

Professor Herzog writes that the overlap of economic,
political, and institutional issues has triggered a contagious effect
throughout the eurozone. However, he also says not all of European states fell
victim to the debt crisis for the same reasons and causes.

The paper also offers an "Investors’ Toolbox" outlining
decision-making for professionals in asset management as well as other
industries in the current and future sovereign bond markets.

The DWS Global Financial Institute was launched in November
2011. DWS Investments is part of Deutsche Bank, Germany’s biggest bank.