Keyword:Debt Crisis

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Study: Wage-setting Strategies for the Eurozone


  In a recent blog post we showed that the upturn of the German economy between 2000 and 2009 was primarily due to a restrictive wage policy. Our newest study seeks to answer the question whether this strategy could work for the crisis-ridden southern European countries. We look at three different wage-setting scenarios:   Reference […] More ...

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Grexit Barometer: What the European Citizens Think


At Sunday's summit Greece's fate will likely be decided. While in Germany voices supporting a Grexit have become louder over the last weeks, the German attitude may differ from public opinions in other EU member states. Therefore, today we want to take a closer look at the people’s opinion towards the Greek debt problem throughout Europe. More ...

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The Rise of the Holdouts: Disrupting Sovereign Debt Restructuring


In the wake of the 2001 Argentine financial crisis and subsequent default, firms specializing in distressed sovereign debt purchased defaulted Argentine bonds at steep discounts with the explicit intent of subsequently litigating for payment of full face value plus interest. These firms have achieved international notoriety stemming from their recent legal victories against the government of Argentina, but the strategy of investing in distressed bonds and resisting restructuring is by no means original. In fact, holdout funds have been developing, improving and employing different strategies for roughly three decades. More ...

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Argentina at a Crossroads


To address Argentina’s economic malaise—and to fully close the door on the 2001 crisis—the next government would need to address subsidies, return the keys to the Central Bank, and come to an agreement with the disdained holdout firms. These are neither easy nor popular measures for a new and untested government. Argentines may say they want change now, but will they reach for the casserole pans if their energy bills spike? More ...

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Study: How Germany Benefits from the Euro in Economic Terms


Since the advent of the European sovereign debt crisis German citizens have voiced mounting criticism of the European Monetary Union and of the euro. However, German economic growth and indeed the German labour market both benefit to a considerable extent from the euro. More ...