Debt Consolidation and Financial Stability
Ignazio Angeloni (),
Ester Faia and
Roland Winkler ()
Revue économique, 2011, vol. 62, issue 6, 1067-1079
Abstract:
We compare three alternative post-crisis public debt consolidation policies (respectively based on expenditure cuts, labour tax or consumption tax increases) in their effects on key macro variables and on bank stability. Labor tax-based policies attain a rapid debt adjustment and low intertemporal debt costs, but at the expense of higher oscillations in bank leverage and risk. Expenditure based and consumption tax-based strategies perform better and similarly between themselves.
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=RECO_626_1067 (application/pdf)
http://www.cairn.info/revue-economique-2011-6-page-1067.htm (text/html)
free
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cai:recosp:reco_626_1067
Access Statistics for this article
More articles in Revue économique from Presses de Sciences-Po
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().