Header

UZH-Logo

Maintenance Infos

How Europe should harness market forces to deal with sovereign credit risk


Hoffmann, Mathias (2010). How Europe should harness market forces to deal with sovereign credit risk. Vox:online.

Abstract

If a European Monetary Fund does happen, how would it work? This column proposes a European Sovereign Insurance Scheme to sell bond insurance on EMU members' sovereign debt. In good times the insurance fees would allow the EMF to build up a capital cushion. In bad times, the EMF could use these funds to facilitate an orderly unwinding of the default – while imposing tough conditions.

Abstract

If a European Monetary Fund does happen, how would it work? This column proposes a European Sovereign Insurance Scheme to sell bond insurance on EMU members' sovereign debt. In good times the insurance fees would allow the EMF to build up a capital cushion. In bad times, the EMF could use these funds to facilitate an orderly unwinding of the default – while imposing tough conditions.

Statistics

Additional indexing

Item Type:Journal Article, not refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2010
Deposited On:24 Feb 2011 12:34
Last Modified:26 Jan 2017 08:48
Publisher:Centre for Economic Policy Research
Free access at:Official URL. An embargo period may apply.
Official URL:http://www.voxeu.org/index.php?q=node/4784

Download

Full text not available from this repository.