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A mechanism to regulate sovereign debt restructuring in the Euro area

Andritzky, Jochen; Christofzik, Désirée I.; Feld, Lars P. - 2016

To make the no-bailout clause credible and enhance the effectiveness of crisis assistance, a consistent institutional and legal framework is needed to ensure that private creditors contribute to crisis resolution. Getting activated as part of ESM crisis assistance, we propose a two-stage...

Persistent link: https://www.econbiz.de/10011521803

The Greek debt restructuring : an autopsy

Zettelmeyer, Jeromin; Trebesch, Christoph; Gulati, Mitu - 2013 - This draft: July 5, 2013

of the restructuring left money on the table from the perspective of Greece, created a large risk for European taxpayers …

Persistent link: https://www.econbiz.de/10009767344

Diversification, risk aversion and expectation in a holdout scenario

Eggert, Wolfgang; Stephan, Maximilian; Temme, Janine; … - 2015 - Version 2015/10/09

We argue a holdout is not a destructive investor behaviour but a rational investment decision. This investment decision is characterised by the mean-variance approach. We investigate intercreditor conflict by diverse portfolio structure. We demonstrate that at some point during the Greek (2012)...

Persistent link: https://www.econbiz.de/10011343761

What explains sovereign debt litigation

Schumacher, Julian; Trebesch, Christoph; Enderlein, Henrik - 2015

We study the occurrence of holdout litigation in the context of sovereign defaults. The number of creditor lawsuits against foreign governments has strongly increased over the past decades, but there is a large variation across crisis events. Why are some defaults followed by a "run to the...

Persistent link: https://www.econbiz.de/10010512583

The sovereign default problem in the Eurozone : an insurance-based approach

Arnold, Nadjeschda Katharina; Rees, Ray - 2015

This paper argues that the Eurozone crisis stems from a risk management failure in the Eurosystem's design, and that applying insurance theory is useful. We model risk neutral agents choosing portfolios of government bonds of n countries in a monetary union and other assets. We firstly analyse a...

Persistent link: https://www.econbiz.de/10010533082

Debt stabilization and debt mutualization in a monetary union with endogenous risk premia

Engwerda, Jacob Christiaan; Aarle, Bas van; Weeren, … - 2015

In this paper we analyse debt stabilization in a monetary union that features endogenous risk premia. In particular, we analyse debt stabilization in two diametrically opposed regimes. In the first regime, the "national fiscal discipline regime", financial markets impose sovereign risk premia...

Persistent link: https://www.econbiz.de/10011350136

How to handle the crisis in Greece? : empirical evidence based on a survey of economics experts

Potrafke, Niklas; Reischmann, Markus Josef - 2016

crisis in Greece. 61.9% of the experts surveyed were not in favour of Greece exiting the Eurozone in the course of the … Republic, Denmark, and Slovakia were in favour of Greece exiting the Eurozone. The share of experts who were in favour of … Greece staying in the Eurozone increased to 69.8% in October 2015. 72.4% of experts surveyed believed that the IMF should …

Persistent link: https://www.econbiz.de/10011452844

How to handle the fiscal crisis in Greece? : empirical evidence based on a survey of economic experts

Mosler, Martin; Potrafke, Niklas; Reischmann, Markus Josef - 2019

We asked economic experts polled by the CESifo World Economic Survey how to handle the fiscal crisis in Greece in the …-level characteristics, especially credit default swaps as a measure of fiscal stability, predict views on whether Greece should exit the …

Persistent link: https://www.econbiz.de/10012050691

The output costs of hard and soft sovereign default

Trebesch, Christoph; Zabel, Michael - 2016 - This version: 28.08.2016

How costly are sovereign debt crises? In this paper we study output losses during sovereign default and debt renegotiation episodes since 1980. In contrast to previous work, we account for the severity of default and not only for its occurrence. Specifically, we distinguish between "hard" and...

Persistent link: https://www.econbiz.de/10011551034

Resolving sovereign debt crises : the role of political risk

Trebesch, Christoph - 2018 - This Version: June 2018

Sovereign defaults are bad news for investors and debtor countries, in particular if a default becomes messy and protracted. Why are some debt crises resolved quickly, in a matter of months, while others take many years to settle? This paper studies the duration of sovereign debt crises based on...

Persistent link: https://www.econbiz.de/10011882161