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How is the value of the Euro depressed? It was launched at 1:1 parity with the dollar. $1 now buys you a mere €0.92
by pinkfoot 7y ago
How is the value of the Euro depressed? It was launched at 1:1 parity with the dollar.
$1 now buys you a mere €0.92
- wz1000 7y agoThat is not how this works. The value of the Euro is depressed compared to what it would be if the deficit running regions were not part of the common currency.
- pinkfoot 7y agoOk, but surely thats true with the dollar too? Some states depress the value the dollar would have if only NY and California were in the Union?
- wz1000 7y agoYes, it is true, but the difference is that the US is also a fiscal union, which is not the case with the EU, making it fundamentally unworkable in its current state. https://blogs.imf.org/2018/02/21/the-euro-area-needs-a-fiscal-union/ https://blogs.imf.org/2018/02/21/the-euro-area-needs-a-fisca...
- wz1000 7y agohttps://www.bertelsmann-stiftung.de/fileadmin/files/BSt/Presse/imported/downloads/xcms_bst_dms_37730_37731_2.pdf https://www.bertelsmann-stiftung.de/fileadmin/files/BSt/Pres...