How much did competitiveness of the Greek economy decline since EMU entry

We launch a set of sectoral and aggregate indices of competitiveness of the Greek economy. We find that competitiveness of the Greek economy has declined by 10% since 2000, both in terms of relative prices and unit labor costs, half than common REER indices suggest on average. We conclude that the need for “internal devaluation” is not as large as common indices seem to suggest.