4 ms·
Yes, it is indeed good in that it makes European exports more competitive, but on the flip side, imports are more expensive, which can mean inflation and/or inc
by epgui 4y ago
Yes, it is indeed good in that it makes European exports more competitive, but on the flip side, imports are more expensive, which can mean inflation and/or increased sensitivity to supply chain disturbances. I’m sure it causes some other problems as well.
(not my area of expertise)
- thehappypm 4y agoI imagine it would be better for an economy that does huge amounts of exporting compared to importing (like China). Europe does a ton of importing so that side of it sucks.
- lkrubner 4y agoA currency depreciation naturally leads to a reduction in imports, since the imports become more expensive.
- thehappypm 4y agoBut it’s also a problem when your export to rely on imports