Policy Article

In favour for a debt cut and against the euro rescue fund? Arguments on trial (in German)

Authors

  • Boysen-Hogrefe
  • J.
Publication Date

The regulations on the safety net for the euro are often criticized for its incentives for debtors. However, currently high government bond spreads can be observed. There is no sign that the safety net evens out risk differences. Thus, the main argument against the safety net may be exaggerated.

Kiel Institute Expert