what if eur weakens? france would not be a loser since its resort would allow it to have a STABLE HARD CURRENCY INFLOW through tourism while being more competitive in weak industries . Germany is not in the same position given its industry exporting state of the art products with an inherent technological advantage that make the demand inelastic but a strong eur necssary to stop any resurgence of increases in workers salary , ie inflation.
eur strength , a reason to stop structural reforms and make the region weaker ? given the usd weakness and all the asian currencies pegged to it , the question is whether Europe is not being penalized by profiting of a strong currency and stopping any structural reforms to cut its costs
Thursday, July 12, 2007
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