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> isn't the Euro basically a straightjacket preventing each individual country from setting its own monetary policy? It's generally a Good Thing for the people
by dpatru 16y ago
> isn't the Euro basically a straightjacket preventing each individual country from setting its own monetary policy?
It's generally a Good Thing for the people in the Eurozone that their governments can't impoverish them by printing money.
- yequalsx 16y agoThese countries are facing cuts to government spending and wages while increasing taxes. This causes debt to be more of a burden. Devaluing the currency would make paying for these things easier. Devaluing too much would cause problems as well.
- dantheman 16y agoSo your advocating stealing from those who are responsible (savers) and giving money to those who are reckless (debtors). Also, when inflation happens it normally hurts the middle class and lower class much more than upper do the lower classes not owning assets - stock/land etc.
- Retric 16y agoPeople who hold cash != savers. Plenty of people with significant equity in their home still have negative cash positions for most of their lives regardless of the amount of money they save. On the other hand people that short stock can have significant cash holdings without saving anything.
- jquery 16y agoTo the extent that home has intrinsic value, the homeowner is saving. To the extent it gains value against the dollar it transfers wealth from non-homeowners. In fact this is the express goal of the current Fed policy.
- yequalsx 16y agoIreland faces a situation of genuine societal collapse. The unemployment, lack of social services, etc. affect everyone regardless of who is a saver or not. I'm advocating that in a dire situation the best course of action be taken. In Ireland's case that would be devaluing the currency. There is too much public debt and raising taxes, lowering pay are not viable solutions.