The Balance of Payments Crisis in the Euro Area Periphery.

The article discusses the sovereign debt crisis in the European countries to finance increased consumption and housing investment. The Target2 system which offsets much of the capital flight with credits extended collectively by euro area central banks to central banks in the periphery is stated. The risk of a country's dependence on borrowed money as its imports exceed its exports is cited. A graph depicting the Periphery Current Account Balances is presened.