On public debt in the euro area

Catherine Mathieu () and Henri Sterdyniak ()
Additional contact information
Catherine Mathieu: OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po

SciencePo Working papers Main from HAL

Abstract: The 2008 crisis led to a strong rise in public deficits and debts in most developed economies. These debts and deficits are currently Keynesian (i.e. required for macroeconomic stabilisation), as shown by low inflation and interest rates levels. Euro area public debts are not guaranteed by a lender of last resort. The rules enshrined in the Stability Pact and the Fiscal Treaty have no economic basis. The paper discusses federalist proposals such as a European Debt Agency or a European Treasury, and unconventional solutions, such as debt monetisation, buyback by the ECB, and even debt cancellation. It concludes in advocating for a rule-free economic policy coordination.

Keywords: public debt; Euro area governance; Euro area fiscal policy; debt management (search for similar items in EconPapers)
Date: 2019
Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03403548
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Brussels Economic Review , 2019, 58 (1-2), pp.25-54

Downloads: (external link)
https://hal-sciencespo.archives-ouvertes.fr/hal-03403548/document (application/pdf)

Related works:
Working Paper: On public debt in the euro area (2019)
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:hal:spmain:hal-03403548

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().