Europe’s Inevitable Haircut
The eurozone's crisis countries - Portugal, Ireland, Spain, and Greece - have no currency to devalue to regain competitiveness, so they must devalue internally, through painful wage and budget cuts. But internal devaluation can work only if the value of debts, where it already represents a heavy burden, is reduced.
https://prosyn.org/Iej8cAJ
BERKELEY – What once could be dismissed as simply a Greek crisis, or simply a Greek and Irish crisis, is now clearly a eurozone crisis. Resolving that crisis is both easier and more difficult than is commonly supposed.