The 2012 Greek Retrofit and Borrowing Costs in the European Periphery
Publisher
Journal of Law and Empirical Analysis
Date
2024
This article examines the impact of Greece retroactively, via legislation, changing the terms in hundreds of billions of euros worth of Greek government bonds governed by domestic Greek law. As the abrogation of gold clauses in US government bonds by the US Congress in 1933 had been, the Greek action was decried as violative of the rule of law and sure to negatively impact the future ability of Euro area sovereigns to borrow. We test whether the Greek action had negative spillovers on European government debt markets. We find no evidence of increased borrowing for even the most peripheral European economies from the Greek action.
Citation
Patrick Bolton et al., The 2012 Greek Retrofit and Borrowing Costs in the European Periphery , 1 Journal of Law and Empirical Analysis, 1–18 (2024).