“…The Eurozone crisis has explicated how external imbalances may cause destructive effects on an economy, either via accumulated differences in productivity (Camarero et al, 2013;Sinn, 2015) or due to sudden changes in the international environment (Lane and Pels, 2012;Obstfeld, 2012;Atoyan et al, 2013). The crisis has naturally focused much of policy and academic attention on the 'Eurozone south' (see, interalia, Arghyrou et al, 2008;Zemanek et al, 2010;Belke and Drager, 2013;Semmler and Tahri, 2017). The issue, however, is arguably much more pertinent in the case of emerging and transition economies -such as those located in the 'European periphery ' and 'super-periphery' (Bartlett and Prica, 2013).…”