The European Redemption Fund: A Comparison of Two Proposals
Carmelo Parello () and
MPRA Paper from University Library of Munich, Germany
This paper proposes a redemption fund for the euro zone countries alternative to that recently proposed by Doluca et al. (2012) – The European Redemption Pact: an Illustrative Guide, GCEE Working Paper No.2, February – and in coherence with a previous proposal of one of the author. In doing so, we envisage a country-specific amortization scheme in which the sovereign debts exceeding the 60% ceiling of GDP is redeemed in 30 years. The paper shows that our redemption scheme is cheaper and less constraining than that proposed by Doluca et al. (2012). Also, our paper shows that fiscal “brakes” – such as those required by the Fiscal Compact – are not necessary for the complete redemption of the Fund.
Keywords: Sovereign debt crisis; Public debt; Amortization schedule; European redemption fund (search for similar items in EconPapers)
JEL-codes: H87 H63 F36 (search for similar items in EconPapers)
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https://mpra.ub.uni-muenchen.de/42232/1/MPRA_paper_42232.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/43660/1/MPRA_paper_43660.pdf revised version (application/pdf)
Journal Article: The European Redemption Fund: A Comparison of Two Proposals (2012)
Working Paper: The european redemption fund: a comparison of two proposals (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42232
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