Most current Eurobond proposals imply substantial cross-subsidisation since some countries partially pay the risk premia for others, thus creating moral hazard and disincentives for fiscal discipline. We suggest, instead, to use standard technologies of financial intermediation like pooling and...

Das Unbehagen, das die internationale Schuldenkrise bei ihm auslöste, war für den Ex-Banker Anlass, sich ausführlicher mit Ursachen, Wirkungen und möglichen Auswegen aus dem Teufelskreis wachsender Schulden zu befassen. In einer Rückschau werden die historischen Weltschuldenkrisen...

The confidence that financial markets are able to discipline the debt behaviour of governments is not very high. Therefore, the Stability and Growth Pact has been implemented as an institutional constraint to substitute for the market mechanism. With the weakening of the Pact, market discipline...