It is this, rather than falling competitiveness, which is squeezing East Asian countries' exports to Japan.
Countries will be monitored not just for excessive deficits and debts, but also for imbalances and falling competitiveness.
Slow growth, high unemployment and the burdens of rising public debt and falling competitiveness have renewed doubts about the sustainability of the European "social model", which is also starting to creak under the weight of an ageing population.
When Latvia's economy first crumbled, it wrestled with many of the same problems faced since by other troubled European nations: a growing hole in government finances, a banking crisis, falling competitiveness and big debts — though most of these were private rather than public as in Greece.
However, Cantillon did not believe that international markets tended toward equilibrium, and instead suggested that government hoard specie to avoid rising prices and falling competitiveness.
The value of the euro may fall, boosting competitiveness and net exports.
After years of high economic growth and low unemployment, the alternative to high recent immigration may well have been more off-shoring, rising inflation and falling international competitiveness.
Mercedes fell from competitiveness throughout 2012, but Brawn said he was optimistic about the team's prospects with Hamilton and Nico Rosberg this year.
But once Britain joins the euro, wages will have to fall to restore competitiveness.
Most damaging of all, he said, was the absence of hope: "For households, wages are still likely to fall to boost competitiveness.
