08 May 2013

The austerity debate is beside the point for Europe

Daniel Gros

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In surveying the heated debate in the eurozone about austerity and the cost of high public debt, this CEPS Commentary suggests that the influential paper by Carmen Reinhard and Kenneth Rogoff misses the key point that public debt owed to foreigners is different from debt owed to residents.

Daniel Gros is Director of the Centre for European Policy Studies.