This paper analyzes the causes of the sovereign debt crisis in the eurozone and examines the policy alternatives … confronting euro area governments. It suggests that pooling fiscal risks, creating an EU Treasury and issuing jointly-backed euro … advantages and disadvantages of euro bonds and concludes that issuing euro bonds can transform a market that is fragmented along …

on foreign-held sovereign debt, devalued its currency, imposed strict capital controls and bankrupted a large number of … Ireland, as it highlights the overall importance of growth dynamics in determining the sustainability of post-default or post-debt … factors not open to the Euro area member states today, from the point of view of the impacted states with strong potential …

Most models currently used to determine optimal foreign reserve holdings take the level of international debt as given …. However, given the sovereign's willingness-to-pay incentive problems, reserve accumulation may reduce sustainable debt levels …. In addition, assuming constant debt levels does not allow addressing one of the puzzles behind using reserves as a means …

In 2007, countries in the euro periphery were enjoying stable growth, low deficits and low spreads. Then the financial … crisis erupted and pushed them into deep recession, raising their deficits and debt levels. By 2010, they were facing severe … debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was …

In 2007, countries in the Euro periphery were enjoying stable growth, low deficits, and low spreads. Then the financial … crisis erupted and pushed them into deep recessions, raising their deficits and debt levels. By 2010,they were facing severe … debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was …

risk-sharing among sovereigns, to introduce synthetic euro bonds that work without debt mutualization. … potential threat to sovereign bond market stability in the euro area; these markets had disintegrated during the “euro crisis …“. While several reforms related to the institutional architecture of the euro area, such as major parts of the banking union …

Conventional wisdom suggests that the European debt crisis, which has thus far led to severe adjustment programs … common currency - the euro - was at best minimal. This paper aims to show that, contrary to conventional wisdom, the crisis … in Europe is the result of an imbalance between core and non-core countries that is inherent in the euro economic model …

Conventional wisdom suggests that the European debt crisis, which has thus far led to severe adjustment programs … common currency - the euro - was at best minimal.This paper aims to show that, contrary to conventional wisdom, the crisis in … Europe is the result of an imbalance between core and noncore countries that is inherent in the euro economic model …

example has been cruelly shaken by the EZ (Euro Zone) crisis, originating increasing doubts about the integration process. It … economic policy. Given the enormous private and public debt accumulated in periphery after the single currency inception, and … the crisis, instead of solve it. Such solutions are unlikely to reduce both sovereign and external debt ratios of …

In this paper we empirically explore the relationship between debt and output in a panel of 72 countries over the … predicted by a standard small open economy model by Aguiar and Gopinath (2007), where debt and output endogenously respond to … total factor productivity (TFP) shocks. First, developing countries' debt falls after a positive output shock, while the …