Indeed, it is worth remembering that monetary union was created precisely because cycles of repeated devaluations did not yield macroeconomic stability, and that was in a world of less intense capital flows. Indeed, as  20  See Ahmed et al.
(2015), “Depreciations without exports: Global value chains and the exchange rate elasticity of exports”, World Bank Policy Research Working Paper 7390; see also the IMF World Economic Outlook 2015, October, chapter 3. 21  See Maggiori, M., and X. Gabaix (2015), “International Liquidity and Exchange Rate Dynamics”. Quarterly Journal of Economics, 3, pp. 1369–1420.