The European Redemption Pact: Implementation and Macroeconomic Effects

Intereconomics, Volume 47, Number 4, p. 230 - 239 (2012)

Posted: 3 Oct 2013

See all articles by Hasan Doluca

Hasan Doluca

Baden-Wuerttemberg Cooperative State University Mosbach

Malte Hübner

Independent

Dominik Rumpf

University of Würzburg

Benjamin Weigert

University of Giessen - Department of Economics

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

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

Hasan Doluca (Contact Author)

Baden-Wuerttemberg Cooperative State University Mosbach ( email )

Lohrtalweg 10
Mosbach, 74821
Germany

Malte Hübner

Independent ( email )

Dominik Rumpf

University of Würzburg ( email )

Sanderring 2
Würzburg, D-97070
Germany

Benjamin Weigert

University of Giessen - Department of Economics ( email )

Licher Str. 62
Giessen, Hessen D-35394
Germany

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