{"product_id":"growth-indexed-securities-as-a-sovereign-financing-tool-for-the-eurozone-von-christian-kitzmueller","title":"Growth-indexed Securities as a Sovereign Financing Tool for the Eurozone","description":"\u003cp\u003eMaster's Thesis from the year 2016 in the subject Economics - Finance, grade: 1, Donau-Universität Krems (International Financial Environment), course: MSc Finance, language: English, abstract: The euro area members have delegated monetary policy to a communitarian central bank, while fiscal and macroeconomic policy strictly remain under national responsibility. In a currency union, the governments issue debt in a currency whose supply they don¿t control. As a result, vulnerability to changing market sentiment and the inability to use counter-cyclical fiscal policies for economic stabilization tends to produce more pronounced booms and busts.\u003c\/p\u003e\u003cp\u003eGDP-indexed securities have been proposed in the academic literature as an instrument to stabilize sovereign debt dynamics across the Eurozone. This Master¿s Thesis evaluates whether the introduction of GDP-indexed sovereign bonds would provide substantial stabilization to the Eurozone in the event of a macroeconomic shock. The results confirm that GDP-indexed sovereign debt does have substantial stabilizing effects on the debt-to-GDP ratios of its issuers. However, the stabilizing capacity of GDP-indexed bonds seems insufficient to protect the Eurozone¿s most vulnerable members from liquidity crises. Nevertheless, GDP-indexed instruments may well function as a contributor to the stability of the Eurozone, along with existing instruments, and potentially with a still-to-be-introduced EMU-wide risk-sharing mechanism.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783668166561\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783668166561","offer_id":39436045287517,"sku":"9783668166561","price":42.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/c063829e-3d62-48f4-ac6c-5d6594aa0b1c.jpg?v=1778304347","url":"https:\/\/shop.autorenwelt.de\/products\/growth-indexed-securities-as-a-sovereign-financing-tool-for-the-eurozone-von-christian-kitzmueller","provider":"Autorenwelt Shop","version":"1.0","type":"link"}