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Martin Mattsson
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Prof. Rodrik, please see the following thoughtful post by Simon Wren-Lewis explaining why a devaluation would have been the least costly policy option. Furthermore barring deflation Latvian style - aggressive deflationary policy is more costly than a more gradual deflation (at least in theory, SWL is not that concerned about riots which you may argue are more likely in a drawn out gradual downturn).
Toggle Commented Jun 10, 2012 on What I learned in Latvia at Dani Rodrik's weblog
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Jun 10, 2012