Leonardo D’Amico, Francesco Giavazzi, Veronica Guerrieri, Guido Lorenzoni, Charles-Henri Weymuller 15 January 2022
Editors’ note: This is the second column in a two-part series. Read the first part here.
In a previous column (D’Amico et al. 2021), we discussed a recent proposal regarding changes to the fiscal rules of the Stability and Growth Pact. In this column, we discuss the second element of our proposal: the plan to move a portion of national debts under the umbrella of a European Debt Management Agency (EDA).
In the last decade, there have been many proposals aimed at addressing a basic issue for the EU, namely, the lack of a large central fiscal entity issuing euro-denominated government debt.1 There are various dimensions to this problem, on