Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
You are indeed correct. It's not possible to have adjustment through falling nominal wages in the periphery. Such an adjustment might take decades. German wages must rise. My proposal doesn't include a mechanism which will create such an outcome. But it would buy time for some other unspecified mechanism which would increase German wages.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Wed Sep 5th, 2012 at 10:11:14 AM EST
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