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    <title><![CDATA[Chart of the Week - Competitiveness adjustment in euro-area periphery]]></title>
    <link>http://www.bruegel.org</link>
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    <pubDate>Fri, 24 May 2013 10:52:11 +0100</pubDate>
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      <title><![CDATA[Chart of the Week - Competitiveness adjustment in euro-area periphery]]></title>
      <link>http://www.bruegel.org</link>
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      <link>http://www.bruegel.org/nc/blog/detail/article/746-chart-of-the-week-competitiveness-adjustment-in-euro-area-periphery/</link>
      <description><![CDATA[Thanks for the comment - I agree. In my forthcoming working paper I quantify both the pre-crisis and post-crisis importance of this factor, both for the total (private) economy and the traded-goods sector. I hope to release the WP soon. Yet in an earlier paper we looked at both total economy and manufacturing unit labour costs (ULC) and found that before the crisis Irish manufacturing ULC was even falling, despite the strong increase in total economy ULC. But in Greece, Spain and Portugal manufacturing ULC has also increased significantly before the crisis. Please see Figure 1 in this paper: www.bruegel.org/publications/publication-detail/publication/491-a-comprehensive-approach-to-the-euro-area-debt-crisis/<br/><br/><a href="http://www.bruegel.org/nc/blog/detail/article/746-chart-of-the-week-competitiveness-adjustment-in-euro-area-periphery/">Read more...</a>]]></description>
      <pubDate>Thu, 19 Apr 2012 18:22:41 +0100</pubDate>
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      <link>http://www.bruegel.org/nc/blog/detail/article/746-chart-of-the-week-competitiveness-adjustment-in-euro-area-periphery/</link>
      <description><![CDATA[\&quot;...if eg low-productivity construction workers are laid off massively while high-productivity manufacturing workers keep their jobs, then average productivity goes up, even if there is no productivity gain in any individual sector of the economy. This leads to an overestimation of the fall in ULC.\&quot;
&nbsp;
Yes, but it also leads to an overestimation of the original problem. For both Ireland and Spain, much of the loss in aggregate competitiveness pre-crisis was the result of the unsustainable expansion of the low-productivity construction sector. Competitiveness was eroded to a much smaller degree in the traded-goods sector. And it\'s traded-goods sector competitiveness&#8230;<br/><br/><a href="http://www.bruegel.org/nc/blog/detail/article/746-chart-of-the-week-competitiveness-adjustment-in-euro-area-periphery/">Read more...</a>]]></description>
      <pubDate>Thu, 19 Apr 2012 17:04:28 +0100</pubDate>
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