SOAS Research Online

A Free Database of the Latest Research by SOAS Academics and PhD Students

[skip to content]

Becchetti, Leonardo and Scaramozzino, Pasquale (2020) COVID-19 debt relief. London: Centre for Financial and Management Studies, SOAS University of London.

[img]
Preview
Text - Published Version
Download (100kB) | Preview

Abstract

The COVID-19 pandemic has been a global shock with dramatic consequences on debts of governments called to alleviate the economic and social impact of the crisis on firms and households. We explore conditions for the feasibility of (COVID-19 generated) government debt relief, justified in principle by the exogenous characteristics of the shock. We outline several technically and economically feasible ways (involving debt “freezing”, debt rescheduling or outright debt cancellation) for achieving this goal and discuss their consequences on moral hazard and the Central Bank balance sheets, as well as their potential impact on CB’s independence, reputation and, ultimately, on inflation and exchange rates. We also discuss the distributive concerns which arise when a CB (as in the Eurozone) operates in a Union with several sovereign member states.

Item Type: Monographs and Working Papers (Working Paper)
Keywords: Covid, sovereign debt
SOAS Departments & Centres: Departments and Subunits > School of Finance & Management
SOAS Working Papers
Subjects: H Social Sciences > HJ Public Finance
Date Deposited: 06 Jan 2021 18:59
URI: https://eprints.soas.ac.uk/id/eprint/34668

Altmetric Data

There is no Altmetric data currently associated with this item.

Statistics

Download activity - last 12 months
Downloads since deposit
30Downloads
31Hits
Accesses by country - last 12 months
Accesses by referrer - last 12 months

Repository staff only

Edit Item Edit Item