Well I don't like the word 'devaluation'. A lot of comentors just go 'Well lets devaluate away balbalb better exports blabla' is very unreflectiv talk. Many of the people that call for devaluation do not want to set the price of the currency to what it is worth, they just want devalution 'because it boosts exports' these are the people that want to have inflation all the time and think its a good thing.

Im very much against that, the productivity norm (what is discribed in the less then zero book) would acctually produce devlation most of the time. If you want it in the 'proper' terms it would mean just setting a constant MV and let Py jump around as much as it wants.

But generally I agree with out, the post is on to something. Specially about defaulting. It is better to default, start fresh. This way the people that badly invested get punished and you get the chance (see iceland) to implment a more modern govermnet (iceland got a new constitution).