Bajo-Rubio, Oscar; Berke, Burcu; Esteve, Vicente - In: Economics: The Open-Access, Open-Assessment E-Journal 10 (2016) 2016-30, pp. 1-27
According to conventional wisdom, 'peripheral' Southern European members of the euro area (Greece, Italy, Portugal and Spain) suffer from a problem of competitiveness. Since their membership of the euro area renders devaluation impossible, adjustment should come through decreasing wages and...