This paper analyses the issue of the dynamics of the TARGET2 system balances during the sovereign debt crisis, when … working as lender of last resort for the euro area member States; indeed, only when the ECB took this responsibility by … launching the Outright Monetary Transactions clear signs of improvement were observed in the sovereign debt crisis. …

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 …

debt from its optimal path. The first perspective is based on a coherent theory of the equilibrium real exchange rate - the … foreign debt ratio - derived from stochastic optimal control - which shows why "divergences" lead to debt crises. The …

lessons from the financial crisis and global recession were being drawn, while concerns about Greece's government debt … problems were threatening to spread to other countries within the euro area, with potential negative repercussions for the euro …

. Recently, this scholarship has explained fiscal convergence through a global imbalances framework. While the interaction … imbalances, rebalancing can only occur if the incentives governing national polities change dramatically. In Europe's case … mixed) economies to address such imbalances. As wage-setting institutions could not restore exchange rate competitiveness a …

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 …