engleski

PROS AND CONS OF INTERNAL DEVALUATION IN THE EU

The causes and outcomes of internal devaluation policy are in the focus of this research. The analysis is conducted on the sample of EU member states using theoretical and statistical tools. The arguments for the implementation of this policy are summarized and examined alongside the arguments that point to its inefficiency and the long-term negative consequences of putting the brakes on economic development. Emphasis is placed on the PIIGS countries that are most affected by the global economic crisis and the Baltic states that, after a sharp decline, have begun to show growth. The policy of internal devaluation is not applicable in any of the EU member states ; the solution should be stronger EU governance which will take the heterogeneity of the EU member states into consideration in the process of creating policies and solution finding.

Baltic states; EU governance; internal devaluation; PIIGS

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