There are several advantages and disadvantages to de-valuing a currency. Among the advantages are:
Exports become cheaper and more competitive to foreign buyers. This would provide a boost to domestic demand. The knock on effect to this would be JOBS.
The higher the level of exports should improve our account deficits.
The combination of the above leads naturally to economic growth.
There are some disadvantages but I do not see them as a factor in a recession. Inflation is the number 1 problem with devaluation. While the rest of Europe may see inflation in the future, I do not see Ireland experiencing inflation anytime soon although we will probably face interest rate rises when inflation does hit the continent.
Probably the only country in the world not to experience the recession or it’s effects has been China. China has been accused and is facing sanctions now for intentionally devaluing and maintaining it’s currency at low levels. They are not in recession and in full employment. Their export market is strong.
Question is should the EU be forced to devalue the Euro? Thoughts