How the Euro Changed International Debt Flows

Large flows of bank lending from core countries in the Eurozone to the periphery lead to large financial imbalances. This column explains what motivated such financial flows. With the advent of the Eurozone, banks in core countries gained relative advantage in lending to the periphery, making such lending very attractive. They also served as intermediaries […] View the full post at: How the Euro Changed International Debt Flows Related posts: Euro Gains as Debt Fears Ease Searching for International Contagion in the 2008 Fnancial Crisis Euro: Headed to 1.25?