Journal ArticleDOI
The Greek Debt Restructuring: An Autopsy
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The Greek debt restructuring of 2012 stands out in the history of sovereign defaults as discussed by the authors, achieving very large debt relief with minimal financial disruption, using a combination of new legal techniques, exceptionally large cash incentives, and official sector pressure on key creditors.Abstract:
The Greek debt restructuring of 2012 stands out in the history of sovereign defaults. It achieved very large debt relief – over 50 per cent of 2012 GDP – with minimal financial disruption, using a combination of new legal techniques, exceptionally large cash incentives, and official sector pressure on key creditors. But it did so at a cost. The timing and design of the restructuring left money on the table from the perspective of Greece, created a large risk for European taxpayers, and set precedents – particularly in its very generous treatment of holdout creditors – that are likely to make future debt restructurings in Europe more difficult.read more
Citations
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Journal ArticleDOI
The European Sovereign Debt Crisis
TL;DR: The origin and propagation of the European sovereign debt crisis can be attributed to the flawed original design of the euro as discussed by the authors, and there was an incomplete understanding of the fragility of a monetary union under crisis conditions, especially in the absence of banking union and other European-level buffer mechanisms.
Posted Content
Sovereign Defaults: The Price of Haircuts
TL;DR: In this paper, the authors constructed the first complete database of investor losses (haircuts) in all restructurings with foreign banks and bondholders from 1970 until 2010, covering 180 cases in 68 countries.
Journal ArticleDOI
The Pass-Through of Sovereign Risk
TL;DR: The authors examined the macroeconomic implications of sovereign risk in a model in which banks hold domestic government debt and found that sovereign risk was recessionary and that the risk channel was sizable, and also measured the effects of subsidized long-term loans to banks.
Reconciling risk sharing with market discipline: A constructive approach to euro area reform
Agnès Bénassy-Quéré,Markus K. Brunnermeier,Henrik Enderlein,Emmanuel Farhi,Clemens Fuest,P-O Gourinchas,Philippe Martin,Jean Pisani-Ferry,Hélène Rey,Isabel Schnabel,Nicolas Véron,B Weder di Mauro,Jeromin Zettelmeyer +12 more
TL;DR: In this paper, the authors proposed six reforms which, if delivered as a package, would improve the euro area?s financial stability, political cohesion, and potential for delivering prosperity to its citizens, all while addressing the priorities and concerns of participating countries.
References
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BookDOI
This Time Is Different: Eight Centuries of Financial Folly
Carmen Reinhart,Kenneth Rogoff +1 more
TL;DR: This Time Is Different as mentioned in this paper presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes.
Book ChapterDOI
The World Economic Outlook
TL;DR: In this paper, an older economist who has lived through many cycles of intellectual fashion (and of general waves of optimism and pessimism) has had more occasion to rethink the ways of approaching the economic problems of the world than those of you who have the enviable misfortune of being younger.
Journal ArticleDOI
The European Sovereign Debt Crisis
TL;DR: The origin and propagation of the European sovereign debt crisis can be attributed to the flawed original design of the euro as discussed by the authors, and there was an incomplete understanding of the fragility of a monetary union under crisis conditions, especially in the absence of banking union and other European-level buffer mechanisms.
Journal ArticleDOI
The Economics and Law of Sovereign Debt and Default
TL;DR: The authors survey the recent literature on sovereign debt and relate it to the evolu- tion of the legal principles underlying the sovereign debt market and the experience of the most recent debt crises and defaults.
Book
Debt Defaults and Lessons from a Decade of Crises
TL;DR: In Debt Defaults and Lessons from a Decade of Crises, Federico Sturzenegger and Jeromin Zettelmeyer examine the facts, the economic theory, and the policy implications of sovereign debt crises as discussed by the authors.