ThreeDdebts (Gligorov & Landesmann)

Three debts: a view from emerging Europe by Vladimir Gligorov and Michael A. Landesmann (VOXEU). The column looks at the causes of the Eurozone crisis, especially in emerging Europe, examine the developments of the “three debts” (public, private, and foreign) and then address the problems of  stability and growth. It argues that despite the debate focusing on public debt, the key issue is the development of private debt. That suggests that the key policy remedy would be private debt consolidation supported by countercyclical fiscal policy. http://migre.me/14J9U