response would provide critical support to the orderly unwinding of the remaining external stock imbalances in the euro area …Over recent years, several euro area countries have registered large and persistent net foreign liabilities. This paper … examines the risks arising from these external stock imbalances, the prospects for their smooth unwinding and the menu of …

landscape, the mounting risk of debt distress and the economic and environmental vulnerabilities as a Small Island Developing …

net external debt levels. In Spain and Portugal, cost competitiveness relative to the rest of the euro area would need to …A simple econometric framework is presented linking current account balances of euro area countries to intra and extra … euro area competitiveness, cyclical positions, fiscal positions and the oil price. The framework is then used to cyclically …

burdens on foreign direct investment, strict product market regulation, or tax systems which favour debt over equity finance … are found to bias external financing towards debt, thereby increasing financial crisis risk. By contrast, more stringent …

monetary policy implementation and the integrated euro area financial structure. This financial structure, in which only a … handful of locations act as gateways between the euro area and the rest of the world, leads to rising TARGET balances at the …