Making debt restructuring work in the eurozone

Ashoka Mody, Visiting Fellow at Bruegel and International Economic Policy Professor at Princeton University, warns about the risks of rising debt ratios in the euro area. Speaking at an event at Bruegel, Mody claimed the insufficiency of austerity and bail-outs to promote growth. His proposal ellaborates on a framework to make debt restructuring possible while avoiding the abuse of this notion by debtor countries.