Iceland
What saved Iceland from mass unemployment after its banks blew up – or saved Sweden and Finland in the early 1990s – was a currency devaluation that brought industries back from the dead. Iceland’s krona has fallen low enough to make it worthwhile growing tomatoes for sale in greenhouses near the Arctic Circle.
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People are much easier tricked into a loss of buying power through a devaluation than to cut their salary! However once inside the euro it's a ruin to exit it. It's a complete disaster. The solution? Cut the labor costs in the uncompetitive European countries and the process is the following
loose job
Unemployment go trought the roof
go to unemployment during 18 months
change perceptions inside your head
emigrate or accept a low paying job
Unemployment starts to go down
Problems: Minimum wage forbids people with low skills to get a new job in some countries.
The end result from a devaluation of the currency would be the same. You have a job but the money you get is not enough to buy anything.
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