OECD Journal: Economic Studies, Volume 2012 Issue 1

Avoiding debt traps: Fiscal consolidation, financial backstops and structural reforms

DOI: 10.1787/eco_studies-2012-5k8xbnjbn9hl

In this article we develop a simple and stylised analytical framework, which is both tractable and feasible to estimate, capturing several key dimensions of the sovereign debt crisis in Europe. We use it to examine if and how a combination of fiscal ...

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