Re:Latvia becomes 18th state to join the eurozone
by aigarius on Thursday January 02, 2014 @03:28AM
(#6998744)
That's what Latvia did - 20% wage cut across the whole country, up to 40% wage cuts in some areas. Government sector lead the way and privates followed. Devaluation also destroys any savings that people might have AND makes the country less safe for the investors.
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Re:Latvia becomes 18th state to join the eurozone
by afterburner on Thursday January 02, 2014 @10:39PM
(#7004009)
Wage cuts make any debt you still have harder to pay off though.
Devaluation makes exports more competitive, which will attract investment as sales increase.