The paper looks at what causes imbalances in the Eurozone's economy. They found that changes in growth have a big impact on the current account balance, especially during times of economic booms or crises. Competitiveness, measured by things like exchange rates and labor costs, also plays a role but is less important. In countries like Germany, competitiveness matters more, while in countries like Greece, growth fluctuations are a bigger factor. To prevent imbalances, countries need to watch their finances closely and regulate credit markets better. Policies like internal devaluation, aimed at making countries more competitive, may not always work as intended.