Is it time for Eurobonds? This column argues that Eurobonds have always been the right solution. Every successful union throughout history has needed to create a proper financial instrument of sovereign debt – and the Eurozone is no different.
The ongoing Eurozone crisis has at least four dimensions:
- Divergent labour costs between countries
- Reluctance to embrace fiscal sharing,
- Seemingly high levels of some sovereign debts, and
- Self-fulfilling high interest rates on some sovereign bonds that may lead to default.
Πηγή: Voxeu