Coronavirus and financial stability 3.0: Try equity – risk sharing for companies, large and small
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| Publication date | 03-04-2020 |
| Publisher | VoxEU |
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| Abstract | COVID-19 is a disaster for many firms – especially small and medium-sized ones. This column proposes a scheme that could bring funding to firms quickly without increasing their leverage or default risk. The plan combines outright cash transfers with a temporary, elevated corporate profit tax at the firm level as a form of conditional payback. The implied equity-like payment structure has positive risk-sharing features for firms, without impinging on ownership structures. The proposal should be implemented at the European level to strengthen euro area resilience. |
| Document type | Web publication or website |
| Language | English |
| Published at | https://voxeu.org/article/try-equity-coronavirus-and-financial-stability |
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Coronavirus and financial stability 3.0: Try equity – risk sharing for companies, large and small
(Final published version)
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