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A Comprehensive Approach to the Euro-Area Debt Crisis

Author

Listed:
  • Zsolt Darvas

    (Institute of Economics - Hungarian Academy of Sciences, Bruegel)

  • Jean Pisani-Ferry

    (Bruegel)

  • Andre Sapir

    (Bruegel)

Abstract

The euro area's sovereign debt crisis continues though significant steps have been taken to resolve it. This paper proposes a comprehensive solution to the crisis based on three pillars: a plan to restore banking sector soundness in the whole euro area, a resolution of sovereign debt crisis -including a revision of EU assistance facilities and a reduction of the Greek public debt- and a strategy to foster growth and competitiveness. The paper provides novel estimates and analysis focusing on the current situation of Greece, Ireland, Portugal and Spain.

Suggested Citation

  • Zsolt Darvas & Jean Pisani-Ferry & Andre Sapir, 2011. "A Comprehensive Approach to the Euro-Area Debt Crisis," CERS-IE WORKING PAPERS 1110, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:1110
    as

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    References listed on IDEAS

    as
    1. Bulkley, George & Harris, Richard & Weller, Paul, 1997. "Tests of the Expectations Hypothesis of the Term Structure in a Model with Bayesian Learning," Discussion Papers 9706, University of Exeter, Department of Economics.
    2. Geert Bekaert & Robert J. Hodrick, 2001. "Expectations Hypotheses Tests," Journal of Finance, American Finance Association, vol. 56(4), pages 1357-1394, August.
    3. Zsolt Darvas, 2010. "Facts and Lessons from Euro Area Divergences for Enlargement," Chapters, in: Ewald Nowotny & Peter Mooslechner & Doris Ritzberger-Grünwald (ed.), The Euro and Economic Stability, chapter 12, Edward Elgar Publishing.
    4. Adrian Blundell-Wignall & Patrick Slovik, 2010. "The EU Stress Test and Sovereign Debt Exposures," OECD Working Papers on Finance, Insurance and Private Pensions 4, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    fiscal sustainability; euro-area crisis; financial interdependence;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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