Eurozone debt likely unsustainable without QE – BIS paper

Authors find benefits of ECB’s PEPP extend beyond the end of the bond-buying programme

ecb-hq-flags
Annabel Jeffery

Debt in some eurozone economies would likely have become unsustainable if the European Central Bank had not intervened with asset purchases after the Covid crisis, new research finds.

The Bank for International Settlements working paper calibrates a model of debt sustainability to a “representative eurozone high-debt country”. Authors Enrique Alberola-Ila, Gong Cheng, Andrea Consiglio and Stavros Zenios then explore the impact of the ECB’s pandemic emergency purchase programme (PEPP).

“Without

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.