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after 25 years telling us how devaluations were a bad, bad, bad process, leading to lower long term competitiveness, declining standards of living, beggar-thy-neighbor policies, we're now being told by the same economists that it's THE solution, and that it's apparently painless.

The whole point of a devaluation is still to stuff the poor (those who get their income in devalued currency, rather than those that have assets that can keep their value in hard currency terms)

And I still fail to see how this is going to lead to any breakup of the euro, even if Greece defaults. I see Portugal and Spain being asked to pay higher interest rates to borrow for a while, but what other practical consequence would it have?

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu May 6th, 2010 at 05:38:29 AM EST

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