ASHOKA MODY: Time for euro zone to revisit debt default option

t is time to revisit the default option. Stunningly little use has been made of bank resolution powers. There are well-known and orderly ways to bring banks’ creditors to the table and engineer debt-equity swaps. Similarly, there exist well-established techniques for sovereign debt reprofilings. The notion that markets would be “spooked” has no good basis. True, Lehman is still fresh in the memory. But the Greek debt-restructuring was well received. And resolution of the festering Latin-American debt crisis in the 1980s required a co-ordinated restructuring.

Mein Blog befasst sich in einem umfassenden Sinn mit dem Verhältnis von Wissen, Wissenschaft und Gesellschaft. Ein besonderes Augenmerk richte ich dabei auf die Aktivitäten des Medien- und Dienstleistungskonzern Bertelsmann und der Bertelsmann Stiftung.