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Archive » July / August 2012 » A Financial Stability Fund as a tool for reducing interest payments on public debt

A Financial Stability Fund as a tool for reducing interest payments on public debt

Giuseppe Vegas
July / August 2012 - n°7
Jel codes: H63, G21, F36

The creation of a Financial Stability Fund, issuing bonds secured by real and financial assets, would produce a reduction in interest payments on public debt and mitigate the link between bank and sovereign risks. Purchases of securities on the secondary market could also determine a reduction in the level and volatility of spreads

 

 

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