@article{Esteves:296095,
      recid = {296095},
      author = {Esteves, Rui Pedro and Tunçer, Ali Coşkun},
      title = {Eurobonds past and present a comparative review on debt  mutualization in Europe},
      address = {2016},
      number = {ARTICLE},
      abstract = {This paper reviews the economic and historical literature  on debt mutualization in Europe with reference to pre-1914  guaranteed bonds and current Eurobonds debate. We emphasize  that, notwithstanding the differences in scale and nature,  debt mutualization solutions similar to Eurobonds were  tried before, and the closest historical examples to the  present debate are the pre-1914 guaranteed bonds. We  highlight three key characteristics of debt mutualization,  which are apparent both in the current debate and in  history: moral hazard, debt dilution and conditionality. We  show that the fears about short-run dilution and moral  hazard were not unknown to pre-1914 market participants.  These problems were partly addressed by mechanisms of  conditionality such as international financial control. The  historical evidence suggests that the dilution of  outstanding obligations may be overplayed in the current  debate. On the contrary, creditors' moral hazard (ignored  in current debt mutualization proposals) was as problematic  as the usual debtor's moral hazard –especially when the  groups of countries guaranteeing the bonds and the creditor  nations did not overlap entirely.},
      url = {http://repository.graduateinstitute.ch/record/296095},
      doi = {https://doi.org/10.1515/rle-2016-0047},
}