Why don't countries issue part of their debt with equity-like characteristics to increase stability in crises, just like corporations do? You could have treasuries that pay a fixed percentage of tax revenue, GDP, or even GDP growth to the bearer, rather than a predefined interest rate.
Yes, it's a bit too late for Europe now, but moving forward this could be a useful bit of financial innovation.
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Review topics and articles of economics © 2011 Forget sovereign debt, think sovereign equity
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