What the euro zone’s periphery needs is a spot of debt forgiveness.
It’ll be like clicking a pair of ruby slippers. Lifting the crushing debt burden off Irish, Portuguese and Greek shoulders is what’s needed to take these economies back to a prelapsarian idyll.
Or so says conventional wisdom.
Unfortunately, debt relief is only part of the story, and not necessarily the biggest part, either.
All of these countries also need a relative devaluation within the single currency. Their economies need to be more competitive compared with the core European power houses.
Πηγή: The Wall Street Journal