July 5 (Bloomberg) -- Greece’s inability to devalue its
currency is often cited as a reason for the extreme economic
pain its citizens are enduring, and many commentators say the
country should return to the drachma to restore competitiveness.
In the U.K., which -- unlike Greece -- isn’t part of the
euro area and can devalue if it wishes, there’s growing pressure
to do so. A letter recently circulated to some 3,000 influential
figures proposed deliberately weakening the British pound to
boost exports and hence economic growth. Debasing currencies in
this way is promoted as an alternative to sovereign default, as
well as to other methods of increasing competitiveness, such as
cutting nominal wages.