EconStor >
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen >
Ruhr Economic Papers, RWI >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/61441
  
Title:Ramifications of debt restructuring on the euro area: The example of large European economies' exposure to Greece PDF Logo
Authors:Belke, Ansgar
Dreger, Christian
Issue Date:2011
Series/Report no.:Ruhr Economic Papers 273
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
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
Publikationen von Forscherinnen und Forschern des RWI
Ruhr Economic Papers, RWI

Files in This Item:
File Description SizeFormat
72228831X.pdf144.81 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/61441

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