Devaluing the euro could provide a lifeline
If the consensus is that when an individual country has gone too far into debt its currency must be devalued, surely this is the same measure that is required for the countries of Europe that share a currency?
It would mean a significant boost for exports from the Eurozone with tourism likely to be a major beneficiary, and it would calm nervous markets. Inflation is a significant risk — but currently deflation and the risk of a euro break-up seems a far worse spectre. Furthermore, on a local level in Ireland, it is unlikely that rampant house price inflation would return.
