jump to navigation

Devaluation Is No Euro Panacea May 14, 2012

Posted by proeconomia in Main, Monetary policy, News on Greece, On the crisis, Opinion.

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.”



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: