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The Future of Sovereign Borrowing in Europe

Editor

Listed:
  • Morten Balling
  • Ernest Gnan
  • Johannes Holler

Author

Listed:
  • Morten Balling
  • Ernest Gnan
  • Johannes Holler
  • Ulrich Bindseil
  • Nicolas Sauter
  • Hans J. Blommestein
  • Maria Cannata
  • Juha Kilponen
  • Alessandro Missale
  • Ewald Nowotny
  • Guido Sandleris
  • Mark L.J. Wright

Abstract

In March 2013 around 130 participants from academia, banking and finance, governments and central banking gathered at the premises of the OeNB in Vienna for a conference jointly organized by the European Money and Finance Forum SUERF, the OeNB and the Austrian Society for Bank Research to discuss “The Future of Sovereign Borrowing.” The financial, economic and sovereign debt crisis has fundamentally changed the rules of the game in sovereign debt markets, particularly in the euro area, but also beyond its borders. Sovereign bonds are no longer widely perceived as ‘risk-free’ assets. Even the sovereign bonds of safe-haven countries have come under close scrutiny or lost some of their prime ratings. Yet crisis countries have seen dramatic downgrades of their sovereign debt ratings so that they face soaring risk spreads and unsustainably high financing costs (or even a loss of access to bond market financing), pushing them towards shorter financing or forcing them to rely on financial support from other countries and the international community or massive intervention by central banks.

Suggested Citation

  • Morten Balling & Ernest Gnan & Johannes Holler & Ulrich Bindseil & Nicolas Sauter & Hans J. Blommestein & Maria Cannata & Juha Kilponen & Alessandro Missale & Ewald Nowotny & Guido Sandleris & Mark L., 2013. "The Future of Sovereign Borrowing in Europe," SUERF Studies, SUERF - The European Money and Finance Forum, number 2013/5 edited by Morten Balling & Ernest Gnan & Johannes Holler, May.
    • Handle: RePEc:erf:erfstu:77
    as

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    References listed on IDEAS

    as
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    1. A Desiree LaBeaud & Hannah McKeating, 2013. "The Largest Drought in American History: Funding for Science Is Drying Up," PLOS Neglected Tropical Diseases, Public Library of Science, vol. 7(8), pages 1-2, August.

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    More about this item

    Keywords

    fiscal policy; monetary policy; sovereign bond markets; sovereign debt; monetary union; financial stability; sovereign yield spreads; sovereign debt crisis; crisis resolution mechanisms; debt sustainability; sovereign borrowing; funding strategies; public debt management; Euro Area debt crisis; sovereign risk; crisis resolution mechanisms; government debt; monetary policy implementation; international comparison; risk management; GDP-Indexed Bonds; Argentinian debt crisis; inflation indexation; real indexation;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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