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That sounds mostly accurate, but I still think Germany would try and push down the value of its currency to subsidize its exports. They have a long history of d
by crdoconnor 12y ago
That sounds mostly accurate, but I still think Germany would try and push down the value of its currency to subsidize its exports. They have a long history of doing that.
- atmosx 12y agoOf course the government will try to somehow undervalue the new currency (probably by printing more - although historically German central bankers and Governments are not flexible like the Swiss for example), however doesn't depend on them. If everyone in Europe and abroad wants to park their assets in the new stable DeutscheMark, that alone could destroy exports. In the meantime everybody around (current markets of German products) will becoming a weak buyer.