Managing the Euro Area Debt Crisis
Unedited rush transcript [pdf]
PIIE Senior Fellow William R. Cline presented the conclusions of his latest Peterson Institute book, Managing the Euro Area Debt Crisis, on July 10, 2014. Willem Buiter, Global Chief Economist of Citigroup, and Ángel Ubide, PIIE, provided commentary on Cline's book and discuss euro area debt sustainability.
In Managing the Euro Area Debt Crisis, Cline warns against complacency about the future. Cline contends that troubled European economies must continue their fiscal consolidation, but if they do so, further debt restructurings for most countries will be unnecessary. Greece is a special case, however, and may need further debt relief contingent on fiscal and structural reform. Cline bases his assessments on a new method for probabilistically analyzing public debt sustainability, which he developed for this study.
Book: Managing the Euro Area Debt Crisis [pdf]
William R. Cline