http://www.ronanlyons.com/2009/07/29/david-begg-on-the-devaluation-consensus-responses/ Irish Economy | World Economy | Property Market | Economic Analysis | Ronan Lyons Fri, 27 Jan 2012 13:32:43 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.ronanlyons.com/2009/07/29/david-begg-on-the-devaluation-consensus-responses/comment-page-1/#comment-4176 Aidan R Mon, 17 Oct 2011 11:05:51 +0000 http://www.ronanlyons.com/?p=791#comment-4176 I came across this article whilst researching the 1986 currency devaluation. It seems to me that you are confusing wage and currency devaluation. If I understand your post correctly you assume that the function and policy output of a currency and wage devaluation are the same? This is not the case. A wage devaluation takes real money out of peoples pockets because it involve a real wage cut. Theoretically a currency devaluation does the same thing but it is felt completely differently. The 1986 and 1992 currency devaluation, you are correct, did stimulate growth and thus employment. There is zero evidence to suggest that cutting wages can act as a functional equivalenbt. Thus, the are qualitatively and quantitatively different. I came across this article whilst researching the 1986 currency devaluation. It seems to me that you are confusing wage and currency devaluation. If I understand your post correctly you assume that the function and policy output of a currency and wage devaluation are the same? This is not the case. A wage devaluation takes real money out of peoples pockets because it involve a real wage cut. Theoretically a currency devaluation does the same thing but it is felt completely differently. The 1986 and 1992 currency devaluation, you are correct, did stimulate growth and thus employment. There is zero evidence to suggest that cutting wages can act as a functional equivalenbt. Thus, the are qualitatively and quantitatively different.

]]> http://www.ronanlyons.com/2009/07/29/david-begg-on-the-devaluation-consensus-responses/comment-page-1/#comment-782 Ernie Ball Thu, 30 Jul 2009 07:12:52 +0000 http://www.ronanlyons.com/?p=791#comment-782 Citing the Ayn Randian ideologues on the property pin here? Is this a new low? Citing the Ayn Randian ideologues on the property pin here? Is this a new low?

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