Ignore Competitiveness?
May 23, 2012 at 09:35 AM EDT
Wolfgang Munchau in the Financial Times argues that competitiveness is not the real problem of Southern Europe and that internal devaluation is not the solution. Paul Krugman disagrees with him and argues that the evidence is clear: Prior to the crisis, inflation was higher in Southern Europe. These countries displayed large current account deficits, a [...]