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What fiddling has been done to the euro?
by admax88q 6y ago
What fiddling has been done to the euro?
- kylegordon 6y agoI wonder if the poster was referring to Quantitative Easing, but the Federal Reserve has been doing that as well.
- headmelted 6y agoYes, I was referring to QE, which is much more disruptive in the eurozone than in the US, even at lower volumes. In the US, you have a central bank that is tasked with protecting the economy of the country, and the central bank is responsible for the money supply. Same in the UK and almost anywhere else. In Europe, the central bank is tasked with protecting the economies of 19 different countries who each have divergent tax and expenditure strategies (some markedly so), meaning the currency is subject to the fluctuations caused by any number of those states getting into difficulty at any time, which happens frequently.
- admax88q 6y agoIs there any data backing this that shows the Euro is less stable than the USD? It seems like it would be a fine choice for a reserve currency to replace USD, if USD goes to shit. Remember it doesn't have to be better than the USD ever was, it just has to be better than the USD now.
- oblio 6y agoGreece crashing barely budged the Euro, though.
- woodpanel 6y agoSeeing the ongoing cases in front of the european nations supreme courts [1], the ongoing debates within EU-nations and between them, about in which direction to steer the currency or about what country benefits the most: alledgedly always the one country a political camp of another country hates the most. Just think about matching the world-views of far-right Greek parties with far-right German ones and you'll see that the Euro has plenty potential for future "fiddling". [1] https://www.nzz.ch/wirtschaft/nach-ezb-urteil-bundesbank-sieht-handlungsbedarf-beim-ezb-rat-ld.1557427 https://www.nzz.ch/wirtschaft/nach-ezb-urteil-bundesbank-sie...
- headmelted 6y agoSeriously? https://www.forbes.com/sites/isabeltogoh/2019/09/12/what-to-expect-from-the-european-central-bank-decision/#2a4fd91b3df9 https://www.forbes.com/sites/isabeltogoh/2019/09/12/what-to-... https://www.intereconomics.eu/contents/year/2016/number/4/article/quantitative-easing-in-the-eurozone-a-one-year-assessment.html https://www.intereconomics.eu/contents/year/2016/number/4/ar... https://www.investopedia.com/articles/investing/070115/understanding-downfall-greeces-economy.asp https://www.investopedia.com/articles/investing/070115/under...
- joshuaissac 6y agoThe Forbes and Intereconomics articles are both about quantitative easing (QE), which is also performed by the US Federal Reserve.[1][2] In your original post, you had implied that the euro was being manipulated in a way that the US dollar is not, so QE is not enough. The Investopedia link is about Greece, and it does not even mention QE, let alone any other type of currency manipulation. 1. https://www.ft.com/content/11b338a2-6d0c-11ea-89df-41bea055720b https://www.ft.com/content/11b338a2-6d0c-11ea-89df-41bea0557... 2. https://www.fool.com/investing/2020/03/23/federal-reserve-pledges-unlimited-quantitative-eas.aspx https://www.fool.com/investing/2020/03/23/federal-reserve-pl...
- headmelted 6y agoI don't want to repost a reply from elsewhere in the thread but as it's directly relevant: Yes, I was referring to QE, which is much more disruptive in the eurozone than in the US, even at lower volumes. In the US, you have a central bank that is tasked with protecting the economy of the country, and the central bank is responsible for the money supply. Same in the UK and almost anywhere else. In Europe, the central bank is tasked with protecting the economies of 19 different countries who each have divergent tax and expenditure strategies (some markedly so), meaning the currency is subject to the fluctuations caused by any number of those states getting into difficulty at any time, which happens frequently.
- admax88q 6y agoYes seriously, I don't follow news on all the worlds currencies. Don't be a dick.