This paper examines how international investors evaluate the change in the risk-return profile often Central and Eastern European countries that recently entered the European Union (EU). By supplementing international investment position data provided by IMF’s International Financial...

This paper dwells on the Eurozone woes and addresses the origins of the transition from a fictitious boom to a painful bust by unravelling (i) the supply-side structural imbalances that formed the core-periphery economic divide, and (ii) the necessity of the periphery's sovereign debt to finance...