Bajo Rubio, Oscar; Berke, Burcu; Esteve García, Vicente - 2016
According to the conventional wisdom, "peripheral" Southern European countries members of the euro area (Greece, Italy …, Portugal, and Spain) suffer from a problem of competitiveness. Since devaluation is not possible because they are part of the … euro, the adjustment should come through decreasing wages and prices in these countries, which, by improving the trade …