Insight into the sustainability of public finances is critical to European policymakers and financial markets alike. It informs decisions concerning the need for reform and the determination of the appropriate risk premium on government debt. Furthermore, unsustainable public finances may cause significant spillovers, highlighting the need for international fiscal surveillance.
An early-warning indicator for debt sustainability
Casper van Ewijk, Jasper Lukkezen, Hugo Rojas-Romagosa, 28 November 2013
Revisiting sovereign bankruptcy
Lee C. Buchheit , Beatrice Weder di Mauro, Anna Gelpern, Mitu Gulati, Ugo Panizza, Jeromin Zettelmeyer, 12 November 2013
Sovereign-debt crises occur regularly and often violently. The recent debt crisis in Greece almost led to the collapse of the euro. Yet, there is no legally and politically recognised procedure for restructuring the debt of bankrupt sovereigns.
The first sovereign debt crisis in the EU
Jon Danielsson, Hermann Oskarsson, 11 September 2012
Today is not the first time Europe has suffered a sovereign-debt crisis. Twenty years ago another crisis happened, passing without notice except amongst those affected, i.e. the Faroe Islands. The islands accumulated too much sovereign debt, eventually getting hit by a crisis much larger in magnitude than even the worst in the ongoing European crisis.
Is Italy going to make it?
Nicola Borri, Gianfranco di Vaio, Giuseppe Ragusa, 4 February 2012
The Future of Banking – solving the current crisis while addressing long-term challenges
Thorsten Beck, 25 October 2011
Three years after the Lehman Brothers failure sent shockwaves through financial markets, banks are yet again in the centre of the storm.
Topics: EU institutions, EU policies, Europe's nations and regions, Financial markets, Macroeconomic policy, Politics and economics, Taxation
Tags: banking, capital requirements, euro bonds, Eurozone crisis, financial risks, financial transaction tax, prudential regulation, ring-fencing, sovereign debt crisis
A deadline for solving a deadly Eurozone sovereign debt crisis
Guillermo de la Dehesa, 20 October 2011
Next Sunday the European Council meeting should, once for all, dispel all of investors’ concerns about the Eurozone crisis. If the Council is not able to achieve this, it will cross the final red line of patience, making it very unlikely to ever regain the confidence of investors.
Welcome to phase 2 of the Eurozone (EZ) crisis
Richard Baldwin, 5 September 2011
IMF Chief Christine Lagarde made phase 2 official: "Developments this summer have indicated we are in a dangerous new phase" (Lagarde 2011).
How does sovereign risk affect bank funding conditions? What can policymakers do?
Fabio Panetta, Michael Davies, 26 July 2011
The financial crisis and the subsequent recession have caused a sharp deterioration in public finances across advanced countries, raising concerns about sovereign credit risk.
A debt swap to save Greece and the euro
Avinash Persaud, 18 May 2010
There is a simple way to resolve the Greek problem that will strengthen the euro, not undermine it, will lead international tax payers to recover the $145 billion they have pledged, not lose it, and will not require ambitious institution building in Europe at a time when the electorate is euro-fatigued. The solution requires three critical ingredients.
European Stabilisation Mechanism: Promises, realities and principles
Charles Wyplosz, 12 May 2010
There is much to reflect on following the decisions taken over the last weekend. The most important ones are:
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013
Holmes, McGrattan, Prescott
Beck, De Haas, Ongena
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- What’s wrong with Europe?Baldini, Manasse
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood