ECB Harmonized Competitiveness Indicator

In case one wants to know who has inflated oneself through the roof, economists at Societe Generale have drawn a nice chart, click to enlarge, courtesy of Societe Generale.
George Soros writes at FT today:

So makeshift assistance should be enough for Greece, but that leaves Spain, Italy, Portugal and Ireland. Together they constitute too large a portion of euroland to be helped in this way. The survival of Greece would still leave the future of the euro in question. Even if it handles the current crisis, what about the next one? It is clear what is needed: more intrusive monitoring and institutional arrangements for conditional assistance. A well-organised eurobond market would be desirable. The question is whether the political will for these steps can be generated.

Latvians inflated their wealth expectations into the sky, but the economists at CEPR still now write:

But even after two years of recession, with unemployment hitting 22 percent, the real effective exchange rate has only dropped 5.8 percent from its peak.

Interestingly, what it takes for Southern Europe to deflate?