Much of Europe is gradually emerging from recession, but many observers see growth at very moderate levels in the years ahead. This will make dealing with high sovereign debt – not an easy task even in the best of times – more difficult, and could shift much of the burden of adjustment to fiscal policy. […]

Much of Europe is gradually emerging from recession, but many observers see growth at very moderate levels in the years ahead. This will make dealing with high sovereign debt – not an easy task even in the best of times – more difficult, and could shift much of the burden of adjustment to fiscal policy. So can it work? A new IMF Staff Discussion Note looks at the historical record to answer the question. It finds that debt reversals happen even when times are tough, but they tend to be hard-earned, smaller, and less frequent. The Note then explores the options policymakers have to ease the adjustment in what could prove to be a very challenging macroeconomic environment in the years to come.

Speakers

Helge Berger , Advisor, IMF European Department

, Advisor, IMF European Department S. Ali Abbas , Senior Economist, IMF European Department

, Senior Economist, IMF European Department Jochen Andritzky , Economist, IMF European Department

, Economist, IMF European Department Discussant – Guntram Wolff , Director, Bruegel

, Director, Bruegel Chair – Zsolt Darvas, Senior Fellow, Bruegel

Event materials

Event summary download

Dealing with High Debt in an Era of Low Growth, by S. Ali Abbas, Bernardin Akitoby, Jochen Andritzky Helge Berger, Takuji Komatsuzaki, Justin Tyson – IMF Staff Discussion Note

Practical details

Venue: Bruegel, Rue de la Charité 33, 1210 Brussels

Time: Thursday 26 September 2013, 12:15 – 14:00 (A light lunch will be served before the event)

Contact: Matilda Sevón, Events Coordinator – matilda.sevon[at]bruegel.org