Engwerda, Jacob C.
[Verfasser:in]
;
Van Aarle, Bas
[Sonstige Person, Familie und Körperschaft];
Weeren, Arie
[Sonstige Person, Familie und Körperschaft]
Debt Stabilization and Debt Mutualization in a Monetary Union with Endogenous Risk Premia
Erschienen in:CESifo Working Paper Series ; No. 5564
Umfang:
1 Online-Ressource (23 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2692509
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 20, 2015 erstellt
Beschreibung:
In this paper we analyse debt stabilization in a monetary union that features endogenous risk premia. In particular, we analyse debt stabilization in two diametrically opposed regimes. In the first regime, the “national fiscal discipline regime”, financial markets impose sovereign risk premia based on each country's government debt level. In the second regime, the “eurobonds Regime”, financial markets impose a risk premium based on the average debt level in the monetary union. We compare outcomes in both regimes using simulations of a number of relevant scenarios