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Ist die Währungsunion zu retten? Für einen anreizeffizienten Krisenmechanismus

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  • Henning Klodt
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    Abstract

    Are the measures of the European Stability Mechanism sufficient for preventing further debt crises similar to those in Greece and Portugal? Definitively not, because private investors still enjoy rather high interest rates of dubious government bonds without being adequately involved in bearing the risks. The paper argues that government bonds of indebted countries should undergo a substantial haircut at the expense of private investors. In turn, the devaluated bonds should be guaranteed by the community of Euro countries. An essential precondition for these measures to work is an appropriate banking regulation which prevents systemic banks from destabilizing entire economies when going bust. Neither the provisional nor the permanent European Stability Mechanism meet these requirements of an incentive efficient rescue plan

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    File URL: https://www.ifw-members.ifw-kiel.de/publications/ist-die-wahrungsunion-zu-retten-fur-einen-anreizeffizienten-krisenmechanismus/kwp-1690.pdf
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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1690.

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    Length: 16 pages
    Date of creation: Mar 2011
    Date of revision:
    Handle: RePEc:kie:kieliw:1690

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    Keywords: European Monetary Union; Debt Mechanics; Brady Bonds;

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    1. Wolfgang Franz & Clemens Fuest & Martin Hellwig & Hans-Werner Sinn, 2010. "A Euro Rescue Plan," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 101-104, 07.
    2. Rainer Maurer, 2010. "Die Verschuldungskrise der Europäischen Währungsunion: fiskalische Disziplinlosigkeit oder Konstruktionsfehler?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, DIW Berlin, German Institute for Economic Research, vol. 79(4), pages 85-102.
    3. Baumgarten, Matthias & Klodt, Henning, 2010. "Die Schuldenmechanik in einer nicht-optimalen Währungsunion," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 45568, Kiel Institute for the World Economy (IfW).
    4. Hans-Werner Sinn & Kai Carstensen, 2010. "Ein Krisenmechanismus für die Eurozone," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63, pages 01-17, November.
    5. Wolfgang Schäuble & Jürgen Stark & Clemens Fuest & Christian Fahrholz & Michael Eilfort & Verena Mertins, 2011. "EU-Rettungsschirm: Folgt der Einstieg in eine Transferunion?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(03), pages 03-20, 02.
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    Cited by:
    1. Boysen-Hogrefe, Jens, 2011. "Für einen Schuldenschnitt und gegen den Rettungsschirm? Argumente auf dem Prüfstand," Kiel Policy Brief 29, Kiel Institute for the World Economy (IfW).

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