THE INTEGRATION OF THE EUROPEAN GOVERNMENT BOND MARKETS DURING THE CRISIS
<div><p>Since the financial crisis in Europe, the concept of the integration of the government bond market has returned. The key element of this idea is the creation of Eurobonds. They would be a single debt instrument backed by the joint and several<em> </em>guarantees of al...
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| Format: | Article |
| Language: | English |
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Uniwersytet Mikołaja Kopernika
2012-06-01
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| Series: | Ekonomia i Prawo. |
| Online Access: | http://apcz.umk.pl/czasopisma//index.php/EiP/article/view/497 |
| Summary: | <div><p>Since the financial crisis in Europe, the concept of the integration of the government bond market has returned. The key element of this idea is the creation of Eurobonds. They would be a single debt instrument backed by the joint and several<em> </em>guarantees of all euro-area members states. The creation of Eurobonds in current market circumstances is burdened with serious risks and may lead to the spread of the financial crisis. In particular, it may be doubted whether this instrument would have the highest rank of creditworthiness, and only an AAA rating would reduce speculations against individual countries and costs of debt refinancing.</p></div> |
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| ISSN: | 1898-2255 2392-1625 |