Erkki Vihriala is a research assistant at Breugel. He holds an MSc Economics from the London School of Economics in addition to a Bachelor’s degree from the University of Helsinki. Prior to joining Bruegel, Erkki worked as an intern at the Bank of Finland. His core interests include empirical macroeconomics, monetary economics and financial economics.
The boom period in Southern Europe was marked by large current account deficits and corresponding capital inflows. The crisis…