Sovereign debt crisis: Euro-reality

Julius Horvath, Alfredo Hernandez Sanchez

    Research output: Contribution to Book/Report typesChapterpeer-review

    Abstract (may include machine translation)

    In the domestic credit market creditor and debtor rights are clearly defined. In contrast, sovereign debt repayment is largely contingent on the debtor government's willingness to repay as enforcement of contracts at the international level is limited. In this chapter we explore different sources of sovereign debt crises as opportunistic and myopic behavior by debtor nations, over-consumption of imported goods, credit temptation by lenders eager to allocate savings surpluses, and unexpected consequences of initially seen appropriate policies. We explore how these factors have played out in the Euro-debt crisis and outline a framework for creditor responsibility to complement debtor self-restraint.

    Original languageEnglish
    Title of host publicationEconomic Imbalances and Institutional Changes to the Euro and the European Union
    EditorsRajmund Mirdala, Rosaria Rita Canale
    PublisherEmerald Publishing Limited
    Pages417-433
    Number of pages17
    ISBN (Electronic)9781787145092
    ISBN (Print)9781787145108
    DOIs
    StatePublished - 2017

    Publication series

    NameInternational Finance Review
    Volume18
    ISSN (Print)1569-3767

    Keywords

    • Creditors
    • European debt
    • Sovereign debt

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