-border bank lending in US dollars, and particularly in euro, is highly concentrated in a small number of countries. The UK is … central in the international network of loans denominated in euro, although there are tentative signs that this role has … optimisation strategies. The empirical analysis suggests that euro-denominated loans face the "tyranny of distance", in line with …

recent euro periphery crisis. Trade costs can limit the pass-through of internal devaluation on export prices. Using data on … relative to domestic prices in the euro periphery. Furthermore, VAT (in theory trade neutral, but in practice much higher on … the euro periphery fiscal devaluation programs, and show that it can account for the most salient features of the data …