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Devaluation Is No Euro Panacea May 14, 2012

Posted by proeconomia in Main, Monetary policy, News on Greece, On the crisis, Opinion.
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Finally, some sense. Read this piece here, the source is WSJ. Here is the ending of the article (read the whole thing, its worthwhile for its examples): “In the absence of an Argentina-style commodity boom to suck foreign money into the economy to finance credit growth, the idea that euro exit and devaluation will deliver a short sharp shock to peripheral economies from which they could rapidly recover seems fanciful. Rather than a demand boost, it is more likely to deliver an unprecedented supply shock—and will prove a recipe for prolonged political and economic chaos.”

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