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Wouldn't bringing back the drachma restore competitiveness?
As a euro member, Ireland cannot devalue to restore competitiveness.
And so to restore competitiveness actual wage rates needed to fall.
But troubled countries have also taken too long to root out vested interests and restore competitiveness.
If Greece still had its own currency, it could restore competitiveness through devaluation.
But once Britain joins the euro, wages will have to fall to restore competitiveness.
That rules out devaluation to restore competitiveness, which is a concern as exports sag.
Such measures should raise productivity growth, but wage restraint will still be needed to restore competitiveness.
Measures taken to restore competitiveness would also encourage investment and increase exports.
Similar(2)
Restoring competitiveness requires reducing wages relative to Germany.
Currencies stabilized at lower levels and restored competitiveness, enabling them to run trade surpluses.
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