Clark Center Forum

 

 

by Luigi Zingales and Roberto Perotti The latest effort by European policy makers to contain the debt crisis offers only temporary relief for the euro area. The involvement of private creditors is a step in the right direction, though it is quantitatively too limited, and the buyback program may end up rewarding banks’ shareholders and […] 

by Darrell Duffie and Anil Kashyap The possibility of a US government default or credit rating downgrade has everyone asking what either would mean. One source of concern is the potential impact on the use of treasury securities as collateral. The market where this matters most is the “repo market”. Darrell Duffie and Anil Kashyap […] 

 

Anil K Kashyap and Francesco Giavazzi With Italy now paying the same rates as Spain to finance its debt, the European crisis has reached a critical stage. To prevent the possible demise of the single currency, the European Union now must come up with a credible plan to address the future of the euro area. […]