Janssen, Ronald, (2015), “Lost In Contradiction: The IMF And Competitive Wage Dumping In The Euro Area”, Social Europe Journal, 27 November
A staff discussion note published recently by the IMF addresses the argument that squeezing wages across a large part of the euro area is dangerous and deflationary as it will not improve anyone’s relative competitive position while undercutting domestic demand everywhere. Since the IMF has always been a staunch advocate of the ongoing euro area experiment of substituting currency devaluation with wages devaluation, it is worth taking a closer look at its work.
Relevant Posts
- Katsimi, Margarita, Zoega, Gylfi, (2015), “The Greek and Icelandic IMF programmes compared”, Voxeu, 19 November.
- Vox editor’s, “The IMF’s analysis of the Irish bailout”, Voxeu, 17 November