Sovereign CDS Spreads in Europe—The Role of Global
... the role of global risk aversion, specific macroeconomic fundamentals, liquidity conditions in the CDS market, and spillovers from other countries in explaining the divergent movements in CDS of different countries witnessed during this period? Has the role of these factors changed between the two m ...
... the role of global risk aversion, specific macroeconomic fundamentals, liquidity conditions in the CDS market, and spillovers from other countries in explaining the divergent movements in CDS of different countries witnessed during this period? Has the role of these factors changed between the two m ...
The Chronicle of the Great Crisis - The Bank of Greece 2008-2013
... trolling debt dynamics and carrying out extensive structural reforms. In early 2010 it became clear that it was no longer possible to cover deficits with financing from the markets. Against this background, in April 2010 the Greek government requested financial support from the euro area countries and ...
... trolling debt dynamics and carrying out extensive structural reforms. In early 2010 it became clear that it was no longer possible to cover deficits with financing from the markets. Against this background, in April 2010 the Greek government requested financial support from the euro area countries and ...
The Chronicle of a Great Crisis: The Bank of Greece 2008-2013
... trolling debt dynamics and carrying out extensive structural reforms. In early 2010 it became clear that it was no longer possible to cover deficits with financing from the markets. Against this background, in April 2010 the Greek government requested financial support from the euro area countries and ...
... trolling debt dynamics and carrying out extensive structural reforms. In early 2010 it became clear that it was no longer possible to cover deficits with financing from the markets. Against this background, in April 2010 the Greek government requested financial support from the euro area countries and ...
Working Paper 17-6: Does Greece Need More Official Debt Relief? If
... Bank, and euro area governments) and €13 billion to the IMF. This is a result of the 2012 debt restructurings, which both reduced the face value of Greece’s privately held sovereign debt by about €100 billion (50 percent of GDP at that time) and substituted a portion of it with official borrowing (s ...
... Bank, and euro area governments) and €13 billion to the IMF. This is a result of the 2012 debt restructurings, which both reduced the face value of Greece’s privately held sovereign debt by about €100 billion (50 percent of GDP at that time) and substituted a portion of it with official borrowing (s ...
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... imbalances. But extensive fiscal consolidation and internal devaluation have come with substantial costs for society, which contributed to delays in reform implementation and to policy reversals since the last Article IV Consultation, culminating in a renewed crisis of confidence in 2015. Since then ...
... imbalances. But extensive fiscal consolidation and internal devaluation have come with substantial costs for society, which contributed to delays in reform implementation and to policy reversals since the last Article IV Consultation, culminating in a renewed crisis of confidence in 2015. Since then ...
Slide 1
... • Large external imbalances • Public debt starting to explode • Overoptimistic convergence expectations • Eroding competitiveness • Low real interest rates • IMF-EU support for ...
... • Large external imbalances • Public debt starting to explode • Overoptimistic convergence expectations • Eroding competitiveness • Low real interest rates • IMF-EU support for ...
The Eurozone Crisis
... 8.7% of GDP during 2010. To achieve this, he announced tough austerity measures for 2010, including a 10% reduction in social security spending, and a freeze of public sector wages. He also promised to reform the pension and tax systems to make sure wealthier people paid more, and to fight corruptio ...
... 8.7% of GDP during 2010. To achieve this, he announced tough austerity measures for 2010, including a 10% reduction in social security spending, and a freeze of public sector wages. He also promised to reform the pension and tax systems to make sure wealthier people paid more, and to fight corruptio ...
Lecture 1.Principles of Public Debt
... The EU members agreed upon setting up constant fiscal monitoring ...
... The EU members agreed upon setting up constant fiscal monitoring ...
View PDF - CiteSeerX
... average. As shown in Table 3, in the case of Greece, the average annual borrowing requirement of the general government for the period 1975-80 was 2.5% of GDP. As a result, by 1980 the debt-to-GDP ratio had risen by four percentage points to 28.6%. The rising deficits reflected increased expenditure ...
... average. As shown in Table 3, in the case of Greece, the average annual borrowing requirement of the general government for the period 1975-80 was 2.5% of GDP. As a result, by 1980 the debt-to-GDP ratio had risen by four percentage points to 28.6%. The rising deficits reflected increased expenditure ...
The Economics of Austerity and the Vicious Spirals of Greece
... (EMU) Greece could not use monetary policy as a stabilizing tool and was therefore left with internal devaluation after the financial crisis hit Europe. The resulting sharp decline in wages and GDP growth made it even more difficult for Greece to honour its debt. Greece was therefore forced to negot ...
... (EMU) Greece could not use monetary policy as a stabilizing tool and was therefore left with internal devaluation after the financial crisis hit Europe. The resulting sharp decline in wages and GDP growth made it even more difficult for Greece to honour its debt. Greece was therefore forced to negot ...
Adjustment Difficulties and Debt Overhangs in the Eurozone Periphery
... It is only in countries with solid public finances (essentially Germany and some of its neighbours) that public debt remains public debt in the sense in which the term is usually used. What is thus happening in the euro area is the age-old process whereby creditors put pressure upon governments to s ...
... It is only in countries with solid public finances (essentially Germany and some of its neighbours) that public debt remains public debt in the sense in which the term is usually used. What is thus happening in the euro area is the age-old process whereby creditors put pressure upon governments to s ...
LIVING (DANGEROUSLY) WITHOUT A FISCAL UNION
... same austerity drive as did the more heavily-indebted Italy3. In the euro area, austerity was a deeply ingrained instinct. The fiscal rules crafted at Maastricht require that the budget deficit be less than 3 percent of GDP and the public debt ratio remain below 60 percent of GDP (or, if it is above ...
... same austerity drive as did the more heavily-indebted Italy3. In the euro area, austerity was a deeply ingrained instinct. The fiscal rules crafted at Maastricht require that the budget deficit be less than 3 percent of GDP and the public debt ratio remain below 60 percent of GDP (or, if it is above ...
Diagnosis, Treatment, and Effects of the Crisis in Greece
... imposing emergency taxes to cope with crisis-driven decline in taxation, and socializing losses (ibid.: 245). As the crisis spread across the eurozone, rescue plans encompassed not only banks, which were being treated as the most important of social institutions, but also national economies, which w ...
... imposing emergency taxes to cope with crisis-driven decline in taxation, and socializing losses (ibid.: 245). As the crisis spread across the eurozone, rescue plans encompassed not only banks, which were being treated as the most important of social institutions, but also national economies, which w ...
The Greek crisis - austerity measures as remedy or punitive action?
... find money lenders to pay back its enormous mountain of debt. That was a rather challenging task as the status of the country changed to one that money lenders preferred to avoid. Its call for help was answered by the formation of the Troika (recently renamed in “The Institutions”), a committee led ...
... find money lenders to pay back its enormous mountain of debt. That was a rather challenging task as the status of the country changed to one that money lenders preferred to avoid. Its call for help was answered by the formation of the Troika (recently renamed in “The Institutions”), a committee led ...
CEPR POLICY INSIGHT No . 51 - Centre for Economic Policy
... a period of years. Fiscal pain is more likely to be chosen as the method for addressing fiscal unsustainability the less polarised are the electorate and the polity in general. Even if a national consensus on fiscal burden sharing can be established, government institutions and political incumbents ...
... a period of years. Fiscal pain is more likely to be chosen as the method for addressing fiscal unsustainability the less polarised are the electorate and the polity in general. Even if a national consensus on fiscal burden sharing can be established, government institutions and political incumbents ...
Presentazione di PowerPoint - Scuola Superiore di economia e
... This has led to delays in facing the crisis, resentment in other countries, endless bargaining, short termism in decisions as national political leaders answered to their own national electorate. The resulting uncertainty has deepened the crisis and made the solutions still unsatisfactory. Also, for ...
... This has led to delays in facing the crisis, resentment in other countries, endless bargaining, short termism in decisions as national political leaders answered to their own national electorate. The resulting uncertainty has deepened the crisis and made the solutions still unsatisfactory. Also, for ...
Gli scenari macroeconomici: crisi del debito, spinte recessive e
... The cost of debt is set to run well below “normal levels” for years (3.1% in 2015, and it is not expected to rise in 2016-17) Nominal growth of 1.5% per year will be enough to stabilize the debt ratio, if the primary surplus is held at 2% of GDP. For 2016-18, we forecast cost of debt around 3% ...
... The cost of debt is set to run well below “normal levels” for years (3.1% in 2015, and it is not expected to rise in 2016-17) Nominal growth of 1.5% per year will be enough to stabilize the debt ratio, if the primary surplus is held at 2% of GDP. For 2016-18, we forecast cost of debt around 3% ...
ppt presentation
... It has loosened its collateral requirements and agreed to extend its special liquidity programs to stabilize market conditions Under its nuclear option, the SMP, it has bought around €70 bn of bonds, an action different from the US or UK Quantitative Easing, as the injection of liquidity is ster ...
... It has loosened its collateral requirements and agreed to extend its special liquidity programs to stabilize market conditions Under its nuclear option, the SMP, it has bought around €70 bn of bonds, an action different from the US or UK Quantitative Easing, as the injection of liquidity is ster ...
The European Crisis Deepens - Peterson Institute for International
... 2.1 European Sovereign Bonds Are Now Deeply Subordinated Claims on Recessionary Economies In an earlier Policy Brief, we laid out the case that the euro area’s immediate problems, in large part, reflect transition from a regime where sovereign debts were perceived to be sacrosanct (“risk-free”) to on ...
... 2.1 European Sovereign Bonds Are Now Deeply Subordinated Claims on Recessionary Economies In an earlier Policy Brief, we laid out the case that the euro area’s immediate problems, in large part, reflect transition from a regime where sovereign debts were perceived to be sacrosanct (“risk-free”) to on ...
Eurozone Crisis - terencetse.com
... At first, the crisis was still treated as a liquidity issue instead of a solvency issue… • …There can be a vicious circle in the • Governments making – the higher are hoping to cost of debt will make solve a 10-year government-bond yields (%) countries more “deficit” issue difficult to hit their in ...
... At first, the crisis was still treated as a liquidity issue instead of a solvency issue… • …There can be a vicious circle in the • Governments making – the higher are hoping to cost of debt will make solve a 10-year government-bond yields (%) countries more “deficit” issue difficult to hit their in ...
Document
... account deficit. A current account deficit means that money outflows from a country. In case of Greece, a sufficient inflow of capital enabled its outflow to be covered. The money, however, had been financed by foreign financial institutions and investors who are oversensitive to a risk of the count ...
... account deficit. A current account deficit means that money outflows from a country. In case of Greece, a sufficient inflow of capital enabled its outflow to be covered. The money, however, had been financed by foreign financial institutions and investors who are oversensitive to a risk of the count ...
Solutions to the debt crisis in the EU from the Slovak
... to indebted countries conditioned on implementation of stabilizing measures. From among other alternatives they think that the European Central Bank – ECB will play a major role in solving the crises either via quantitative easing or via purchasing government bonds with full sterilization known also ...
... to indebted countries conditioned on implementation of stabilizing measures. From among other alternatives they think that the European Central Bank – ECB will play a major role in solving the crises either via quantitative easing or via purchasing government bonds with full sterilization known also ...
Working Paper No. 693
... government balance less the external balance. To put it succinctly, if a nation runs a current account deficit, then its domestic private balance (households plus firms) equals its government balance less that current account deficit. To make this concrete, when the US runs a current account deficit ...
... government balance less the external balance. To put it succinctly, if a nation runs a current account deficit, then its domestic private balance (households plus firms) equals its government balance less that current account deficit. To make this concrete, when the US runs a current account deficit ...
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... cost? The ten percent we observe might actually be the low-crime equilibrium, and by changing some param eter in the model, the system might jump to a highcrime equilibrium of, say, twenty percent.3 In fact, we do not even know whether there are multiple equilib ria in reality, or whether the stat ...
... cost? The ten percent we observe might actually be the low-crime equilibrium, and by changing some param eter in the model, the system might jump to a highcrime equilibrium of, say, twenty percent.3 In fact, we do not even know whether there are multiple equilib ria in reality, or whether the stat ...
Greek government-debt crisis
The Greek government-debt crisis (also known as the Greek depression) started in late 2009. It was the first of five sovereign debt crises in the eurozone – later referred to collectively as the European debt crisis. In Greece, triggers included the turmoil of the Great Recession, structural weaknesses in the Greek economy, and a sudden crisis in confidence among lenders.In late 2009, fears developed about Greece's ability to meet its debt obligations, due to revelations that previous data on government debt levels and deficits had been misreported by the Greek government. This led to a crisis of confidence, indicated by a widening of bond yield spreads and the cost of risk insurance on credit default swaps compared to the other Eurozone countries – Germany in particular. In 2012, Greece's government had the largest sovereign debt default in history. On June 30, 2015, Greece became the first developed country to fail to make an IMF loan repayment. At that time, Greece's government had debts of €323bn.