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The debt challenge in Europe

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  • Alan Ahearne
  • Guntram B. Wolff

Abstract

The euro area faces a double challenge- debt overhang and the need for price adjustment. This paper reviews the debt challenges in the household and corporate sectors and maps out some policy options. In particular, we document the increase in private debt prior to the crisis and consider how the corporate and household sectors have adjusted their balance sheets during the crisis. We examine previous experiences with corporate and household...

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  • Alan Ahearne & Guntram B. Wolff, 2012. "The debt challenge in Europe," Working Papers 686, Bruegel.
    • Handle: RePEc:bre:wpaper:686
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    References listed on IDEAS

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    Cited by:

    1. Zsolt Darvas, 2012. "The euro crisis- ten roots, but fewer solutions," Policy Contributions 755, Bruegel.
    2. Voinea, L. & Lovin, H. & Cojocaru, A., 2018. "The impact of inequality on the transmission of monetary policy," Journal of International Money and Finance, Elsevier, vol. 85(C), pages 236-250.

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