Are buybacks an efficient way to reduce sovereign debt?
Stijn Claessens, Giovanni Dell'Ariccia, 5 March 2011Commentators have recently floated the possibility of debt buybacks as a way of reducing a country's debt, particularly in the crisis-ridden Eurozone. Are buybacks a good idea? This column argues that, in theory, the answer might be yes. In practice, however, the answer is usually no – debt buybacks are generally costly and inefficient.Full Article: Are buybacks an efficient way to reduce sovereign debt?