Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/61441 
Year of Publication: 
2011
Series/Report no.: 
Ruhr Economic Papers No. 273
Publisher: 
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen
Abstract: 
The Greek government budget situation plays a central role in the debt crisis in the euro area. The debt to GDP ratio is above 150 percent, while the deficit to GDP ratio exceeds 10 percent. To re-establish the Maastricht criteria, respectively, strong consolidation measures need to be implemented, with potential adverse effects on the Greek economy, and further credit requirements. Therefore, a debt conversion might become a reasonable alternative. The aim of this paper is to provide some simulation-based calculations on the expected fiscal costs for the governments in the large European countries Germany, France, Spain and Italy arising from different policy options - among them a second Greek rescue package. Under realistic conditions, a debt conversion may be the less costly strategy for Greece and the euro area partner states. A value-added of these calculations lies in a potential transfer to smaller euro area member countries.
Subjects: 
Euro area debt crisis
debt conversion
Greece
JEL: 
F33
F34
H63
ISBN: 
978-3-86788-318-4
Document Type: 
Working Paper

Files in This Item:
File
Size
144.81 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.