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 …

's capitalists to support opening up the economy to FDI. This attitude switch is more likely to occur the greater the debt overhang …

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 …

and, where needed, restructuring to resolve banking crises and the debt overhang. Latin America's experience yields …: euro-zone countries following suit by reintroducing devalued national currencies would invite catastrophe. Despite this …

not an optimum currency area. The second part points out that euro is an intensifier of the business cycle. The third part … examines the Greek crisis. The fourth part explains the inner tensions in the eurozone. The fifth part asks whether euro is … suitable for the countries of Central and East Europe. The sixth part examines the debt crisis within the eurozone. …

We investigate the behaviour of gross capital flows and net capital flows for euro area member countries. We highlight …-deficit countries. Finally, we describe the reforms that can improve macro-financial stability across the euro area. …