When the financial crisis that originated in the US struck in late 2008, Greece’s current account deficit – the counterpart to its large capital inflows – was a staggering 15% of its GDP. The sudden stop of these capital inflows required the elimination of Greece’s current account deficit, which within the common euro currency area, would require a fall in the prices of its exports and an increase in the relative cost of its imports sufficient for that purpose (internal devaluation). In a world