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Actually you are mistaken. I never made that inference. Infact, I was just stating that a stronger currency will damage exports. That is why Europe will only lose from a stronger EURO.
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For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence) -
1) Not the citizen that wants to buy imported goods.
2) The effect of a strong currency on such a large common-currency market is much more marginal than in japan.Comment
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If you are looking at inter-European trade it will be unharmed. But if you look at EU Global trade it will be harmed. It is quite simple. This is a fact. If the EU has a stronger Euro it will be damaging.For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence)Comment
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of course. I agree with you. but for a large market such as the euro-zone, it will have LESS of an impact.Comment
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Hooray! An economics thread.
Clearly the US should increase its net gross market share policy in order to fulfill a mighty morphine actuarial jengelheimer schmidt.
Anyway, I always thought that having a weak currency was beneficial for exports. Maybe the US will break out of its trade deficit. I love it when Greenspan talks dirty...<p style="font-size:1024px">HTML is disabled in signatures
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What I am mostly looking at is EU/US trade balances.of course. I agree with you. but for a large market such as the euro-zone, it will have LESS of an impact.
Loinburger, it seems like that. With the dollar lower, exports will jump and the trade deficit will be broken.For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence)Comment
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What I am mostly looking at is EU/US trade balances.
well, this is a part of the overall picture, isn't it?Comment
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US exports will increase to the EU, and EU exports will decrease to the US. Overall, giving the US the upper hand. A weaker currency also will typically increase consumer independence on national goods. For example in Argentina, the weaker currency forced consumer to buy products made in the country, rather than ones bought overseas.For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence)Comment
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And in the same time, denied them products of higher quality made in other countries.
It's a trade-off. But it is good for manufacturing.Comment
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Exactly, but in a economic slowdown having a weaker currency will be better.And in the same time, denied them products of higher quality made in other countries.
It's a trade-off. But it is good for manufacturing.For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence)Comment
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1. Variability in currency values over time is normal.
2. A lot of the rhetoric around "strong currency" (dollar or euro) is misplaced.Comment
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Eurozone: the place of choice for smart investors.Comment
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