Paul Krugman’s Midweek Buzzkill

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“[Martin] Wolf describes Ireland as having had a “uniquely successful adjustment”. I know what he means: Ireland, alone among the euro crisis countries, has already achieved significant “internal devaluation”, that is, has managed to reduce its costs and prices compared with the core countries. But it’s really worth bearing in mind what “successful adjustment” looks like:

A few more such successes and Ireland will be back to the 19th century.

Yikes.

Pyrrhic Adjustment (Paul Krugman, New York Times)

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