Table of Contents
ISRN Economics
Volume 2013, Article ID 891795, 20 pages
http://dx.doi.org/10.1155/2013/891795
Research Article

Playing with Fire: Internal Devaluation for the GIPSI Countries

1BBVA Group and Department of Finance and Accounting, University of A Coruña, Campus Elviña s/n, 15071 A Coruña, Spain
2Department of Applied Economics, University of A Coruña, Campus Elviña s/n, 15071 A Coruña, Spain

Received 3 June 2013; Accepted 29 June 2013

Academic Editors: B. M. Tabak and E. Yeldan

Copyright © 2013 David Peón and Fernando Rey. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Linked References

  1. International Monetary Fund, “Global financial stability report,” October 2012, http://www.imf.org/External/Pubs/FT/GFSR/2012/02/pdf/text.pdf.
  2. A. Abbas, O. Basdevant, S. Eble et al., “Strategies for fiscal consolidation in the post-crisis world,” Fiscal Affairs Department Paper 10/04, International Monetary Fund, Washington, DC, USA, 2010. View at Google Scholar
  3. International Monetary Fund, “World economic outlook 2012,” October 2012, http://www.imf.org/external/pubs/ft/weo/2012/02/pdf/text.pdf.
  4. O. Blanchard and D. Leigh, “Growth forecast errors and fiscal multipliers,” IMF Working Paper 13/1, International Monetary Fund, Washington, DC, USA, 2013. View at Google Scholar
  5. P. R. Lane, “The European sovereign debt crisis,” Journal of Economic Perspectives, vol. 26, no. 3, pp. 49–68, 2012. View at Google Scholar
  6. S. Schmitt-Grohé and M. Uribe, “The case for temporary inflation in the Eurozone,” CEPR Discussion Paper 9133, 2012. View at Google Scholar
  7. J. C. Díez, Devaluación y Sostenibilidad de Deuda, El País, 2012.
  8. M. Antelo and D. Peón, “Fiscal consolidation and the sustainability of public debt in the GIPSI countries,” Unpublished manuscript.
  9. International Monetary Fund, “Fiscal monitor,” October 2012, http://www.imf.org/external/pubs/ft/fm/2012/02/pdf/fm1202.pdf.
  10. J. Caruana and S. Avdjiev, “Sovereign creditworthiness and financial stability: an international perspective,” Banque de France Financial Stability Review, no. 16, pp. 71–85, 2012. View at Google Scholar
  11. C. M. Reinhart and K. S. Rogoff, “From financial crash to debt crisis,” American Economic Review, vol. 101, no. 5, pp. 1676–1706, 2011. View at Publisher · View at Google Scholar · View at Scopus
  12. A. Mody and D. Sandri, “The eurozone crisis: how banks and sovereigns came to be joined at the hip,” Economic Policy, vol. 27, no. 70, pp. 199–230, 2012. View at Publisher · View at Google Scholar · View at Scopus
  13. W. Buiter, G. Corsetti, and N. Roubini, “Excessive deficits: sense and nonsense in the treaty of maastrich,” Economic Policy, vol. 8, no. 16, pp. 57–100, 1993. View at Google Scholar
  14. C. M. Reinhart, V. R. Reinhart, and K. S. Rogoff, “Public debt overhangs: advanced-economy episodes since 1800,” Journal of Economic Perspectives, vol. 26, no. 3, pp. 69–86, 2012. View at Google Scholar
  15. C. M. Reinhart and K. S. Rogoff, “Growth in a time of debt,” American Economic Review, vol. 100, no. 2, pp. 573–578, 2010. View at Publisher · View at Google Scholar · View at Scopus
  16. U. Panizza and A. F. Presbitero, “Public debt and economic growth: is there a causal effect?” MoFiR Working Paper 65, 2012. View at Google Scholar
  17. T. Herndon, M. Ash, and R. Pollin, “Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff,” Amherst Working Paper 322, Public Economy Research Institute at University of Massachusetts, 2013. View at Google Scholar
  18. E. Faraglia, A. Marcet, R. Oikonomou, and A. Scott, “The impact of debt levels and debt maturity on inflation,” CEPR Discussion Paper 9257, 2012. View at Google Scholar
  19. K. S. Rogoff, The Bullets Yet to be Fired to Stop the Crisis, Financial Times, 2011.
  20. P. Krugman, Internal Devaluation, Inflation, and the Euro (Wonkish), New York Times, 2012.
  21. J. E. Stiglitz, The Price of Inequality: How Today’s Divided Society Endangers Our Future, W. W. Norton & Company, 2012.
  22. R. Rajan, “Is inflation the answer?” Project Syndicate, 2011. View at Google Scholar
  23. J. Andrés, Debe Europa Tolerar una Inflación Más Elevada, Fedea, 2012.
  24. J. Aizenman and N. Marion, “Using inflation to erode the US public debt,” NBER Working Paper 15562, 2009. View at Google Scholar
  25. European Commission, “Declaration on a concerted European action plan of the Euro area countries,” 2008, http://ec.europa.eu/economy_finance/publications/publication13260_en.pdf.
  26. Council of the European Union, “Eurogroup statement,” February 2012, http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/128075.pdf.
  27. D. Bencek and H. Klodt, “The kiel institute barometer of public debt—institut für weltwirtschaft,” 2011, http://www.ifw-kiel.de/think-tank/policy-support/The-Kiel-Institute-Barometer-of-Public-Debt%20.
  28. C. Wyplosz, Fiscal Discipline in the Monetary Union, VoxEu, 2012.
  29. U. S. Das, M. G. Papaioannou, and C. Trebesch, Restructuring Sovereign Debt, 1950–2010: From Process to Outcomes, VoxEu, 2012.
  30. Council of the European Union, Statement by the Heads of State or Government of the Euro Area and EU Institutions, Brussels, Belgium, 2011.