Effects of debt mutualization in a monetary union with endogenous risk premia
| Autor: | Bas van Aarle, A.J.T.M. Weeren, Jacob Engwerda |
|---|---|
| Přispěvatelé: | Econometrics and Operations Research, Research Group: Operations Research |
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
050208 finance Eurobonds Eurobond Risk premium media_common.quotation_subject 05 social sciences Financial market Government debt Financial system sovereign debt sustainability Debt 0502 economics and business Economics Euro area Internal debt 050207 economics Debt levels and flows Credit risk media_common sovereign debt crisis |
| Zdroj: | Structural Change and Economic Dynamics, 44, 100-114. Elsevier |
| ISSN: | 0954-349X |
| Popis: | This paper analyses debt stabilization in a monetary union that features endogenous risk premia. In particular, debt stabilization in two diametrically opposed regimes is compared. In the first regime, the “national fiscal discipline regime”, financial markets impose sovereign risk premia based on each country's government debt level. In the second regime, the “Eurobonds regime”, financial markets impose a risk premium based on the average debt level in the monetary union. Outcomes in both regimes are compared using simulations of a number of relevant scenarios. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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