Publication
15 Mar 2011
The pricing of sovereign credit risk is a necessary component of the financial architecture of the European Monetary Union. However, unnecessarily high and volatile risk premia on government bonds are currently preventing effective financial intermediation within the euro area, thereby inhibiting its economic recovery. Several proposals have been made on how these risk premia should be brought down, namely i) permanent pooling of funding through joint bond issuance, ii) temporary liquidity assistance through multilateral funds, iii) debt buybacks using multilateral funds, and iv) debt restructuring.
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English (PDF, 26 pages, 487 KB) |
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Author | Christian Kopf |
Series | CEPS Policy Briefs |
Issue | 237 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2011 Centre for European Policy Studies (CEPS) |