IMF staff note: Structural reforms 'more desirable' than nominal wage cuts in Europe


The internal devaluation process in the eurozone periphery would run more smoothly if the countries in question were able to raise productivity through structural reforms, according to a staff discussion note published by the International Monetary Fund (IMF) today.

The note stressed that achieving internal devaluation "hinges on depreciating the real effective exchange rate through lowering nominal wage growth and/or improving productivity relative to trading partners".

Many economists have obs

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