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That's what Latvia did - 20% wage cut across the whole country, up to 40% wage cuts in some areas. Government sector lead the way and privates followed. Devalua
by aigarius 13y ago
That's what Latvia did - 20% wage cut across the whole country, up to 40% wage cuts in some areas. Government sector lead the way and privates followed. Devaluation also destroys any savings that people might have AND makes the country less safe for the investors.
- afterburner 13y agoWage cuts make any debt you still have harder to pay off though. Devaluation makes exports more competitive, which will attract investment as sales increase.