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Cœuré mulls advantages and problems of GDP-linked bonds

ECB board member says bonds could protect taxpayers but pricing might be difficult

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Benoît Cœuré

Benoît Cœuré said that states might start issuing GDP-linked bonds as part of a reform of international capital flows, but cautioned policy-makers to consider the instruments' possible disadvantages.

Cœuré, a European Central Bank executive board member, called for major reforms of financial globalisation to make it "efficient, enduring and equitable", in a speech in Paris on September 15.

Policy-makers needed to improve the quality of capital flows, he said, so that they "tilted away from short

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