Financialization of government debt? European government debt management approaches 1980–2007
| Autor: | Jenny Preunkert |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Finance
business.industry 05 social sciences Debt-to-GDP ratio Government debt Financial system External debt General Business Management and Accounting 0506 political science 0502 economics and business 050602 political science & public administration Financialization Business Internal debt 050207 economics Debt levels and flows Public finance Senior debt |
| Zdroj: | Competition & Change. 21:27-44 |
| ISSN: | 1477-2221 1024-5294 |
| DOI: | 10.1177/1024529416678072 |
| Popis: | The aim of this article is to explore the strategies European government debt managers used in response to the growing demand for credit by governments since the 1980s and how the introduction of the common currency area influenced the nature of government debt management. The analysis indicated that in the 1980s, a paradigm shift emerged as bilateral debt relationships became negligible, while the role of financial market principles became much stronger. A financialization of the relationship with private investors took place, although still highly regulated. The introduction of the euro resulted not only in the new European rules but also in the financialization of the regulatory framework. The participating governments lost the privilege to encapsulate their markets. Because of these two processes, managing government debt in the common currency area meant developing a strategy to successfully issue in a transnational market without support from public authorities at least until the crisis. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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