Countries in Central, Eastern and South Eastern Europe have been hit hard by the global crisis. There is a need to rethink the growth model because a return to the status quo ante does not seem realistic

Countries in Central, Eastern and South Eastern Europe have been hit hard by the global crisis. There is a need to rethink the growth model because a return to thestatus quo antedoes not seem realistic.

This paper analyses the emergence of internal debtor-creditor relationships within a monetary union. Developing a stock- ow consistent model consisting of three regions - North, South, and the Rest of the World (RoW), where North and South form a monetary union - it shows how the simultaneous...