Government Debt Denomination Policies Before and After the EMU Advent

Hübner, Georges; Joliet, Robert

doi:10.1007/s11079-011-9238-9

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Government Debt Denomination Policies Before and After the EMU Advent

Hübner, Georges; Joliet, Robert

2013 • In Open Economies Review, 24, p. 283-309

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https://hdl.handle.net/2268/163197

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10.1007/s11079-011-9238-9

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Keywords :

European Monetary Union; Government bond; Yield spread

Abstract :

[en] Through a cost-minimizing approach, this paper derives joint indicators to assess the efficiency of the mix of sovereign debt currencies between the countries belonging to the European Monetary Union (EMU). This theoretical insight enables us to explain why and how the introduction of the euro and the adoption of a common monetary policy may have led to significant changes in debt structure among EMU members, notably in favor of further euro-denominated debt. The interplay of intrinsic and strategic variables yields stylized facts that are consistent with country-specific empirical evidence. Following the sovereign debt crisis, we further emphasize the value-added of a coordinated debt issuance policy among EMU countries.

Disciplines :

Finance

Author, co-author :

Hübner, Georges ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Gestion financière

Joliet, Robert; IESEG School of Management

Language :

English

Title :

Government Debt Denomination Policies Before and After the EMU Advent

Publication date :

2013

Journal title :

Open Economies Review

ISSN :

0923-7992

eISSN :

1573-708X

Publisher :

Springer

Volume :

Pages :

283-309

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 15 February 2014

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