The Euro’s Day of Reckoning

Posted on May 10, 2007
Filed Under Public Policy |

TCS Daily – The Euro’s Day of Reckoning:
Within the constraints of a currency union, the Mediterranean countries cannot resort to currency devaluation to restore competitiveness. Nor can they use interest rate policy to stimulate domestic demand. Instead, the rules of the currency union require them to endure deflation or to increase productivity as the only means of restoring their eroded competitiveness.

Interesting article on the consequences of increasing Euro valuation.

Post to Twitter

More on this topic (What's this?)
How the Euro Crisis is Good for Your Portfolio (Investment U, 12/12/11)
European Union Tightens the Reins on Fiscal Rules (Wall Street Daily, 1/31/12)
Why We Need Currency Competition (Learn Mining News, 1/25/12)
The Basics of Currency Investing (Money Morning, 12/16/11)
Read more on Euro (EUR), Currency at Wikinvest

Comments