The accumulated, persistent trade and economic imbalances between the south euro area (SEA) and the north euro area (NEA) countries brought about severe strains for the euro following the global financial crisis. This paper assesses alternative scenarios suggested to restore the trade imbalances...

Recent empirical work on financial structure and economic growth analyzes multi-country dataset in panel and/or cross-section frameworks and concludes that financial structure is irrelevant. We highlight their shortcomings and re-examine this issue utilizing a time series and a Dynamic...