A New Start for the Eurozone: Dealing with Debt

Giancarlo Corsetti, Lars Feld, Philip Lane, Lucrezia Reichlin, Hélène Rey, Dimitri Vayanos, Beatrice Weder di Mauro 15 April 2015



Table of Contents

About the Authors   

Executive Summary  


1.    With high debt, the Eurozone remains vulnerable   

2.    Dealing with the legacy sovereign debt   

3.    Reforming the crisis lending framework    

4.    Diversification of sovereign risk and a safe asset    



Appendix A: Calibration of national debt buyback from seigniorage   
Appendix B: Calculation of the haircut for GDP bonds   


Professor of Macroeconomics, University of Cambridge; Director, Cambridge-INET

Director, Walter Eucken Institute; and Professor of Economic Policy, University of Freiburg

Whately Professor of Political Economy at Trinity College Dublin and CEPR Research Fellow

Chairman and co-founder, Now-Casting Economics; Professor of Economics, London Business School; CEPR Research Fellow; Fellow of the British Academy

Lord Bagri Professor of Economics, London Business School and CEPR Research Fellow

Professor of Finance and Director, Paul Woolley Centre for the Study of Capital Market Dysfunctionality, LSE

Distinguished Fellow, Emerging Markets Institute, INSEAD Singapore and Economic Policy and International Macroeconomics Professor, Gutenberg University Mainz; CEPR Research Fellow