economic booms in some peripheral Euro-zone countries financed by large capital inflows; the credit and asset price booms and … then the busts including Sudden Stops in capital flows; the strong interaction between sovereign debt and domestic banking … Latin American audiences. For those Euro-zone countries that built up large Euro-denominated external liabilities, Latin …

Most models currently used to determine optimal foreign reserve holdings take the level of international debt as given …. However, given the sovereign's willingness-to-pay incentive problems, reserve accumulation may reduce sustainable debt levels …. In addition, assuming constant debt levels does not allow addressing one of the puzzles behind using reserves as a means …

This paper compares financial assistance programmes of four euro-area countries (Greece, Ireland, Portugal, and Cyprus …) and three non-euro-area countries (Hungary, Latvia, and Romania) of the European Union in the aftermath of the 2007 …, such as the size of imbalances, financing, unique cooperation of the IMF and various European facilities, and membership of …

This paper compares financial assistance programs of four euro-area countries (Greece, Ireland, Portugal, and Cyprus …) and three non-euro-area countries (Hungary, Latvia, and Romania) of the European Union in the aftermath of the 2007 … as the size of imbalances, financing, unique cooperation of the IMF and various European facilities, and membership of a …

This paper analyzes the Euro crisis in light of the experience of center-periphery relations over the last 40 years of … the center. Financial institutions at the center play a crucial role. The “boom” phase leads to serious imbalances in the … institutions provide some fraction of the debt service to borrowing governments in the form of new debt, for them to add to the …

In 2007, countries in the euro periphery were enjoying stable growth, low deficits and low spreads. Then the financial … crisis erupted and pushed them into deep recession, raising their deficits and debt levels. By 2010, they were facing severe … debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was …

In 2007, countries in the Euro periphery were enjoying stable growth, low deficits, and low spreads. Then the financial … crisis erupted and pushed them into deep recessions, raising their deficits and debt levels. By 2010,they were facing severe … debt problems. Spreads increased and, surprisingly, so did the share of the debt held by domestic creditors. Credit was …

This paper investigates the causes behind the euro debt crisis, particularly Germany's role in it. It is argued that …-area competitiveness and current account imbalances, and the corresponding debt flows that such imbalances give rise to, are at the heart … ; Sovereign Debt Crisis ; Competitiveness Imbalances ; Fiscal Transfers ; Bailouts ; Austerity …

depressed euro that boosted German extra-area exports. But the crisis that started in Euroland's so-called periphery has … meanwhile reached the core. With pro-euro sentiments dwindling fast across the European Union (EU), the future of the euro … turn out to be a double-edged sword. In case of a euro breakup, swift appreciation of the new deutschmark would abruptly …