Evidence suggests that the introduction of the EMU is associated with a shift from sustainability to unsustainability of external debt accumulation among the Euro countries considered.

This note offers policy recommendations based on empirical support that shows current account imbalances in the EMU are unsustainable and may jeopardize stability in the Euro Area.

This research contradicts the highly cited Rienhart and Rogoff study, which states that debt higher than 90% of GDP will negatively affect a country's economic growth.

This paper analyzes the feedback mechanisms between economic downturns and financial stress for several euro-area countries.