They could also import from non-euro countries; what then?

Then the Euro falls relative to those currencies, until those imports stop. That is why you have a floating currency.

This isn't fucking rocket science.

<The low-wage service sector may be unimportant to the export side (to low order), but it is very important to the import side.>

But then you are shifting your argument

No, my argument has always been about current accounts imbalances.

That it comes as a surprise to you that current accounts imbalances can arise from both import suppression and export subsidies speaks to the quality of your knowledge of national accounting, not to the quality of my argument.

- Jake

Friends come and go. Enemies accumulate.