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mitigated by permitting appropriately-structured cross-country liability for sovereign debt incurred by individual nations … if cross-country debt liability were permitted and which are Pareto superior to the existing outcome …
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Was hat der Euro mit griechischer Mythologie zu tun? Ganz einfach: Wie Odysseus dem Klang der Sirenen, so haben die EU-Mitgliedstaaten der Verführungskraft neuer Schulden zu widerstehen. Im Rahmen der aktuellen Politik werden sie jedoch immer wieder schwach. Der neue Chef des ifo Instituts,...
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This paper assesses the consequences of implementing a joint liability debt system in a two-country small open economy … model. With joint liability a default of one country makes the other participant liable for its debt. The results highlight …
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