The European Redemption Fund: A Comparison of Two Proposals
AbstractThis paper proposes a redemption fund for the euro zone countries alternative to that recently proposed by Doluca et al. (2012) – The European Redemption Pact: an Illustrative Guide, GCEE Working Paper No.2, February – and in coherence with a previous proposal of one of the author. In doing so, we envisage a country-specific amortization scheme in which the sovereign debts exceeding the 60% ceiling of GDP is redeemed in 30 years. The paper shows that our redemption scheme is cheaper and less constraining than that proposed by Doluca et al. (2012). Also, our paper shows that fiscal “brakes” – such as those required by the Fiscal Compact – are not necessary for the complete redemption of the Fund.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42232.
Date of creation: 24 Oct 2012
Date of revision:
Sovereign debt crisis; Public debt; Amortization schedule; European redemption fund;
Other versions of this item:
- Parello Carmelo Pierpaolo & Visco Vincenzo, 2012. "The European Redemption Fund: A Comparison of Two Proposals," Politica economica, Società editrice il Mulino, issue 3, pages 273-306.
- Parello, Carmelo Pierpaolo & Visco, Vincenzo, 2012. "The european redemption fund: a comparison of two proposals," MPRA Paper 42874, University Library of Munich, Germany, revised 26 Nov 2012.
- H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
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- Doluca, Hasan & Hübner, Malte & Rumpf, Dominik & Weigert, Benjamin, 2012.
"The European Redemption Pact: An illustrative guide,"
02/2012, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
- Hasan Doluca & Malte Hübner & Dominik Rumpf & Benjamin Weigert, 2013. "The European Redemption Pact. An illustrative guide," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 341-367.
- Hasan Doluca & Malte Hübner & Dominik Rumpf & Benjamin Weigert, 2012. "The European Redemption Pact: Implementation and macroeconomic effects," Intereconomics: Review of European Economic Policy, Springer, vol. 47(4), pages 230-239, July.
- Carmen M. & M. Belen Sbrancia, 2011.
"The Liquidation of Government Debt,"
Working Paper Series
WP11-10, Peterson Institute for International Economics.
- Gustav A. Horn & Alexander Herzog-Stein & Ansgar Rannenberg & Katja Rietzler & Silke Tober & Peter Hohlfeld & Fabian Lindner & Sabine Stephan, 2013. "Krise überwunden? Prognose der wirtschaftlichen Entwicklung 2013/2014," IMK Report 86-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Gustav A. Horn & Alexander Herzog-Stein & Peter Hohlfeld & Fabian Lindner & Ansgar Rannenberg & Katja Rietzler & Sabine Stephan & Silke Tober, 2014. "Deutschland im Aufschwung - Risiken bleiben," IMK Report 91-2014, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
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