The unfolding of the crisis in the Eurozone can be explained by the interaction of institutional features and policy failures, and by their interconnection with real and financial imbalances. The crisis has shown that internal divergence in the EZ is based on important structural components...

Although it already existed in Central and Eastern Europe during Soviet times, the irregular economy has boomed in the last dozen years, while undergoing a dramatic change of structure. This boom has sometimes been used to justify the claim that "transitional depression" has been grossly...