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This is great for German exports. Expect to see more Mercedes Benz in the streets of America. It generates some inflation as imports are pegged to the dollar(s

This is great for German exports. Expect to see more Mercedes Benz in the streets of America. It generates some inflation as imports are pegged to the dollar(somebody mentioned that it is hedged, it is just by some extent), but overall is actually good for the economic block. The EU needs to export to survive. The EU has been fighting a possible deflation for most of the 2010s, this is actually not so negative as people might think. If ECB would raise interest to the same rate as the FED, Euro would become too strong. Inflation is already decreasing in Germany even with that 0% interest rate. The main inflation concern is the gas prices for this winter and this isn't fixable with monetary policy. If we have no gas, no amount of money will be able to buy it.

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01100011 4y ago
This thesis only holds if MB can afford to keep running its factories. Modern economies cease to function without energy, or when the price of that energy is sufficiently high.
simonh 4y ago
>This is great for German exports. Expect to see more Mercedes Benz in the streets of America. A lot of MB sold in the UK are made in Mexico.
- OJFord 4y ago
  Import/export is really about money flow though, it's not (directly) that important where the goods are made or end up.
mutatio 4y ago
Could you link a source regarding inflation decreasing in Germany? Only days ago German central bank chief Joachim Nagel said it will soon breach 10%.
Ancalagon 4y ago
Not to mention US tourism to Europe will increase I bet.
- lostmsu 4y ago
  IMHO, it will still be a while until it grows back to pre-COVID levels.
im3w1l 4y ago
Currency devaluation is basically demanding that workers do more for less. That's great for companies, if those workers accept it and don't jump ship. However some of the brightest Germans I know are in the process of emigrating. They are tired of lockdowns and inflation and everything.
- ithkuil 4y ago
  Emigrate, but where? I hear discontent from people from several countries but it's not clear there is any place to go where it is universally "better". Some places are better for some aspects, some places are better for other aspects; but like a short blanket, you pull one end and it uncovers the other end.

deleted 4y ago

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01100011 4y ago

This thesis only holds if MB can afford to keep running its factories. Modern economies cease to function without energy, or when the price of that energy is sufficiently high.

simonh 4y ago

>This is great for German exports. Expect to see more Mercedes Benz in the streets of America. A lot of MB sold in the UK are made in Mexico.

OJFord 4y ago
Import/export is really about money flow though, it's not (directly) that important where the goods are made or end up.

mutatio 4y ago

Could you link a source regarding inflation decreasing in Germany? Only days ago German central bank chief Joachim Nagel said it will soon breach 10%.

Ancalagon 4y ago

Not to mention US tourism to Europe will increase I bet.

lostmsu 4y ago
IMHO, it will still be a while until it grows back to pre-COVID levels.

im3w1l 4y ago

Currency devaluation is basically demanding that workers do more for less. That's great for companies, if those workers accept it and don't jump ship. However some of the brightest Germans I know are in the process of emigrating. They are tired of lockdowns and inflation and everything.

ithkuil 4y ago
Emigrate, but where? I hear discontent from people from several countries but it's not clear there is any place to go where it is universally "better". Some places are better for some aspects, some places are better for other aspects; but like a short blanket, you pull one end and it uncovers the other end.