The falling euro and the crisis that wasn’t | The World | International affairs blog from the FT – FT.com

English: IMF Data Dissemination Systems partic...

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This is an interesting short article from Alan Beatie at the Financial Times.

The falling euro and the crisis that wasn’t | The World | International affairs blog from the FT – FT.com.

It argues that the controlled depreciation of the Euro to other major economies’ currencies is a healthy thing, citing IMF evidence emerging from a working paper based upon the experience of South Korea emerging from the 2008 crisis. The working paper makes interesting reading too but be warned it contains econometric models!

Many foreign exchange commentators are looking to further depreciation of the Euro, as well.

The question that are left in my mind include:

    1. If the Euro continues to fall against other major trading currencies, surely that will be enormously advantages to Germany because it is an export driven economy?
    2. Has Germany engineered an erosion of the Euro to stimulate its own growth in exports?

3 responses

  1. Pingback: Eurozone leaders point to recovery – FT.com « Dr Alf's Blog

  2. Pingback: Gideon Rachman | Seit über 10.000 Jahren Erfahrung in Versklavung

  3. Pingback: America’s incredible shrinking labour force | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com « Dr Alf's Blog

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