May 8, 2013
EU Can Only Make the Best of Terrible Choices
Clive Crook, Bloomberg
Despite reports to the contrary, internal devaluation can work. Ireland has shown that and so, oddly enough, has Germany. For Europe’s sake, it must be made to work in Greece and the other struggling economies -- not as the only treatment, but alongside fiscal transfers and other measures. To work, internal devaluation has to hurt. Whether the pain is bearable or unbearable depends on how it’s done.
TAGGED: Spain, Germany, Eurozone, Greece, Europe, EU, European Union