Still thinking about a euro-area breakup. The question for this project is: For a given current account deficit and prior real appreciation, how big is the devaluation?The dataset contain 36 devaluation episodes, all of which featured a minimum 15% nominal depreciation over six months less-than-fully offset by inflation (i.e. a real depreciation). They are all […]
Monthly Archives: December 2012
Thinking about a eurozone breakup
This project draws on post-Bretton Woods history of large-scale currency moves. Each observation marks the date at which the currency collapsed or went from slow fall to freefall. The penultimate column is the change in the nominal exchange rate over the following months. The final column is the cpi inflation rate from the breakup plus […]