Hoffmann, Mathias (2010). How Europe should harness market forces to deal with sovereign credit risk. Vox:online.
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.
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.
| 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: | 01 Nov 2022 08:14 |
| Publisher: | Centre for Economic Policy Research |
| OA Status: | Closed |
| Free access at: | Official URL. An embargo period may apply. |
| Official URL: | http://www.voxeu.org/index.php?q=node/4784 |
Hoffmann, Mathias