Sovereign default and state-contingent debt
Martin Brooke, Rhys Mendes, Alex Pienkowski, Eric Santor. Recent Eurozone events have changed the perception that sovereign debt is a problem of emerging-market economies. This column highlights some major deficiencies of the current framework, and proposes two new and complementary types of state-contingent debt contracts. The first – sovereign cocos – are designed to tackle […]
The Eurozone: If only it were the 1930s
Crafts, Nicholas. This column argues that the legacy of public debt resulting from the crisis in the Eurozone is a serious threat. Both the size of the problem and the options to address it make life much more difficult for policymakers than was the case in the late 1930s after the collapse of the gold standard. […]