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"If all countries were to exit Euro Zone, Euro would probably be echanged for 30-50% more than it's currently worth" This kind of things are easily solved by q
by restalis 12y ago
"If all countries were to exit Euro Zone, Euro would probably be echanged for 30-50% more than it's currently worth"
This kind of things are easily solved by quantitative easing. You can always print more money in order to down-keep a currency to what may be considered "the right price". The real problem is not a currency's rise, it's its fall.
- DoubleMalt 12y agoTell this to the Swiss national bank. They desperately tried to keep the franc down. When they finally saw that the position became untenable, it gained over 20% on the Euro overnight (and so did many public and private loans in Austria and other European countries that had banked on the low interest rate of loans in Switzerland)
- restalis 12y agoSwitzerland is special in this regard. They did not had the ambition to profit from the all thing because well, they benefit from the very idea of impersonating a party that won't take advantage of one's finance in such a callous manner! In other words, they had a condition that would not go well with the quantitative easing thing, they had to choose between keeping a long maintained image/tradition or profit in short term, and they made their choice.