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It's a two way street, the sovereignty argument. A bigger entity has different sovereignty to multiple smaller entities. The British pound is worth about half w
by barrkel 7y ago
It's a two way street, the sovereignty argument. A bigger entity has different sovereignty to multiple smaller entities. The British pound is worth about half what it was when I first moved to the UK - that's not the kind of sovereignty that's kind to my pocket. A bigger currency is a more stable store of value for citizens. That's not worthless, independent of the lack of friction in international transactions - not a major friction online, but really nifty when you cross a land border every day.
- raxxorrax 7y agoAnd yet, the argument here is that a weak currency is advantageous for an economy. Advanteageous relative to countries also having the Euro burden perhaps. But even just from a marcoeconomic perspective there seem to be distinct contradictions everywhere.
- MagnumOpus 7y ago> weak currency is advantageous for an economy Some nuance please... Your fallacious point of view is pushed by certain lobbying groups because a weak currency is - horribly harmful to inhabitants' living standards (how many days of disposable income does it take a developer to buy an iPhone in the UK vs in the US? About three times as many.) - very helpful to the shareholders of exporting companies (cheap labor and high profit margins)
- atmosx 7y agoHow much does it cost cancer treatment in the US vs the UK?