by Michael Haliassos, Christian Knoll, and Jan Krahnen
Greek Economists for Reform
February 11, 2011
Eurobonds are actively being debated as a potential solution to the financing problems of troubled countries with fiscal imbalances. This note presents the views of the German financial sector and tries to uncover systematic patterns in the responses, based on a recent survey of top financial practitioners and policy makers conducted by CFS. We find that the German financial sector is particularly pessimistic about continuation of the fiscal crisis. Eurobonds are expected to come, but without the necessary policy prerequisites; and the minority who want them to come do not necessarily support fiscal coordination measures. While the majority of the financial sector support fiscal and labor market coordination measures, such support is not systematically linked either to their expectations or to their preference for introduction of Eurobonds.
Read the Full Article
No comments:
Post a Comment