Does the New Jersey Dollar Need to Depreciate?

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Business Insider

Here is a provocative Great Graphic from Joe Weisenthal at Business Insider.  It compares New Jersey and New York GDP performance.  The under-performance of NJ since the Great Recession is noteworthy, but it appears that it began actually earlier. 

While this may be interesting in its own right, it is noteworthy that not a single pundit is calling for a devaluation of the New Jersey dollar against the New York dollar.  

It is not simply because there is factor (labor, capital) mobility, but also because the union is irrevocable and is understood as such,.  As we have argued, European officials willingness to talk about Greece leaving or the disintegration of EMU has done immeasurable damage to sentiment.  Once that toothpaste is out of the tube, it is very difficult to push it back in.