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But since Italy, Spain and Greece run the same currency - why don't they use the same strategy? Are you saying that they are more "ethical" and don't have the s

But since Italy, Spain and Greece run the same currency - why don't they use the same strategy? Are you saying that they are more "ethical" and don't have the stomach for such an evil deed? Edit: I apologize to readers and commenters - I got out of context, I'm not referring only to the current monetary/fiscal position of Germany, but to the whole process that got everybody where they are.

danssig 16y ago
Because they don't have a surplus? The issue is multiple drastically different economies trying to use the same currency. All the reasons you try to appreciate or depreciate your currency are not available to most EU countries.
- JanezStupar 16y ago
  This is not only a fiscal issue. This ruin was in the making for decades. While germans were busy figuring out how to produce better stuff for cheaper PIIGS were busy figuring out how to sell shit for more. One strategy is hard short term, but bears long term dividends - the other is awesome short term but spells ruin in the long term and the ruin came. And now the Germany is at fault for all the years of support, encouragement, warnings and leading by example to these countries? I don't buy it :)
  - barrkel 16y ago
    You're right that it's not only a fiscal issue; it's a monetary issue. Ireland was ruined by low German-style interest rates making money far cheaper than it was before; that fueled a property bubble. The gains to Ireland from 1990-2000 or so were real; the Celtic Tiger wasn't hype. Much of the gains in the past decade, however, were from too low an interest rate.
barrkel 16y ago
They cannot all run current account surpluses with one another; it's a mathematical impossibility. Germany's current account surplus with other Euro-zone members corresponds exactly to a current account deficit; the sum of the two is zero in this zero-sum game.

danssig 16y ago

Because they don't have a surplus? The issue is multiple drastically different economies trying to use the same currency. All the reasons you try to appreciate or depreciate your currency are not available to most EU countries.

JanezStupar 16y ago
This is not only a fiscal issue. This ruin was in the making for decades. While germans were busy figuring out how to produce better stuff for cheaper PIIGS were busy figuring out how to sell shit for more. One strategy is hard short term, but bears long term dividends - the other is awesome short term but spells ruin in the long term and the ruin came. And now the Germany is at fault for all the years of support, encouragement, warnings and leading by example to these countries? I don't buy it :)
- barrkel 16y ago
  You're right that it's not only a fiscal issue; it's a monetary issue. Ireland was ruined by low German-style interest rates making money far cheaper than it was before; that fueled a property bubble. The gains to Ireland from 1990-2000 or so were real; the Celtic Tiger wasn't hype. Much of the gains in the past decade, however, were from too low an interest rate.

barrkel 16y ago

They cannot all run current account surpluses with one another; it's a mathematical impossibility. Germany's current account surplus with other Euro-zone members corresponds exactly to a current account deficit; the sum of the two is zero in this zero-sum game.