Ricardo Reis Proposes European Safe Bonds

Professor Ricardo Reis and a group of European economists from universities throughout the United States and Europe have launched a new website offering innovative solutions to the ongoing financial crisis in Europe.  Through their website, euro-nomics.com, the group focuses on systematically identifying the weaknesses of the Eurozone design that have caused the European debt crisis and proposing remedies to end it.

The group, consisting of macroeconomists and financial economists who are experts on finance, international economics, macroeconomics and the European economy, have met regularly over the past six months, to discuss the European crisis with the goal of providing an economic analysis of the implications of different policy measures being proposed by the current political debate and planning to put forward their own proposal for overcoming the Eurozone's problem. 

In their work, the group proposes what the Wall Street Journal has called "a cleverly designed bond instrument [that] can ensure the Euro zone's survival," called a European Safe Bond, or ESBie.  Distinct from the euro bonds being proposed in other quarters, ESBies are a financially engineered product that the group says would alleviate the ongoing stress under which many European banks currently find themselves, and make great strides toward solving the EU's fiscal crisis.

The website collects the writings of the professors with a blog, a page devoted to material related to their proposal for "European Safe Bonds," an op-ed page with links to op-ed articles written by members of the group, and a Project Europe page containing draft chapters from their upcoming book project.