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“Notes On Internal Devaluation”

“Notes On Internal Devaluation”

This paragraph is close to my heart:

The obsession with wages ignores other production costs

A proper adjustment would require an adjustment of all costs across the board. The proponents of an internal devaluation focus almost exclusively on wages. They neglect energy costs, for instance, in spite of the countries of the periphery being amongst the most energy dependent in Europe.

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