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The ECB sets interest rates to suit Germany because it is the economic monster in the EU. So if Germany needs low interest rates to stimulate the economy, the e
by barking 11y ago
The ECB sets interest rates to suit Germany because it is the economic monster in the EU. So if Germany needs low interest rates to stimulate the economy, the eurozone gets them even countries whose economies are in danger of overheating.
This is what happened to some degree in the early noughties.
Cheap loans in Europe both boosted German exports and contributed to the later recession in the countries worst affected.
And as for breaking the eurozone rules, well even Germany did that when it suited them.
I am not an expert on the Greek economy but I'd imagine that tourism makes up a lot of their 'exports'.
Otherwise I don't know. They are a relatively small country and so are unlikely have many indigenous multi-national brands that you or I would have heard of.
- yummyfajitas 11y agoInterest rates are numbers in a computer. As far as real resources, you seem to agree with me that the Germans worked hard to make stuff that was then sent out of Germany ("boosted German exports"). Germans work, Greeks consume. I guess when the British empire stole stuff overseas for consumption in Britain, that was bad for Britain and good for the world? If production is good and consumption is bad, maybe we can tax the poor and make them work but give the proceeds to the rich?