European Central Bank Archives

How deep in debt? Measuring sovereign default risk

Written by

Researchers propose a more comprehensive means to estimate sovereign credit risk.

Sovereign credit risk is when a government is under threat of being unable to meet its loan obligations and going bankrupt. Traditional ways of measuring such risk are fundamentally flawed. Researchers Manish K Singh from IIT Roorkee in India, Marta Gómez-Puig from the University of Barcelona, and Simón Sosvilla-Rivero from the Complutense University of Madrid, Spain propose a new measure […]

How to get out of the debt trap? Navigating the global financial turmoil

Written by

Jean-François Serval and Jean-Pascal Tranié advocate for the conversion of public debt into equity in productive businesses, fostering innovation and economic growth.

Global economies faced a precarious cycle of recovery pre-pandemic, marked by currency imbalances and interest rate cuts, resulting in a staggering 300 trillion USD global debt burden. Urgent reform of the international monetary system is necessary to address escalating geopolitical crises and economic vulnerabilities, requiring coordinated efforts and a shift towards inclusive and resilient frameworks. Renowned French experts Jean-François Serval, […]