Maurel, Mathilde; Schnabl, Gunther - 2011
The 2010 European debt crisis has revived the discussion concerning the optimum adjustment strategy in the face of … asymmetric shocks. Whereas Mundell's (1961) seminal theory on optimum currency areas suggests depreciation in the face of crisis … perspective by confronting exchange rate based adjustment with crisis adjustment via price and wage cuts. Econometric estimations …