EA Infernal Devaluation Progressing

by Rebecca Wilder EA Infernal Devaluation Progressing The EU answer to rebalancing portfolio and trade flows within the Euro area (EA) without currency devaluation is recession and deflation. They call this ‘internal devaluation’ – shifting relative prices by reducing domestic demand in the debtor countries, thereby shifting the terms of trade. Marshall Auerback calls it ‘infernaldevaluation’. […]