The European Redemption Pact: Implementation and Macroeconomic Effects
Intereconomics, Volume 47, Number 4, p. 230 - 239 (2012)
Posted: 3 Oct 2013
Date Written: June 1, 2012
Abstract
One possible solution to the sovereign debt crisis is the European Redemption Pact (ERP) proposed by the German Council of Economic Experts. The ERP provides sustainable financing conditions for participating sovereigns to facilitate bringing public debt ratios below the reference value of 60% within the next 20 to 25 years. In this paper, we describe one possible way of implementing the ERP and analyse the fiscal effects of participating in the ERP. The macroeconomic impact of the proposal is illustrated with the multi-country model NiGEM.
Suggested Citation: Suggested Citation
Doluca, Hasan and Hübner, Malte and Rumpf, Dominik and Weigert, Benjamin, The European Redemption Pact: Implementation and Macroeconomic Effects (June 1, 2012). Intereconomics, Volume 47, Number 4, p. 230 - 239 (2012), Available at SSRN: https://ssrn.com/abstract=2334792
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