Analysis: Euro overshoot will rekindle bloc-wide tensions

Comments (6)
pbgd wrote:

Here is a new example of the built-in instability of the Euro. The same currency simply does not function for strong and weak economies simultaneously. Some need lower interest while other can’t survive without higher interest. Some need a weaker Euro to recover while others desperately depend on a stromger Euro.

Feb 06, 2013 5:53am EST  --  Report as abuse
Bob9999 wrote:

The upward course of the euro is built-in to the currency itself and cannot be stopped without redefining the euro. The ECB is obligated by law to manage the euro to minimize inflation, regardless of side effects such as reduced employment. That makes the euro more like the Bundesmark before it and less like currencies such as the franc, which were often managed to achieve the kind of policy objectives described in the article. To Germany, any other policy is completely unacceptable politically, so it is unlikely that the fundamental policy of the euro (that it is to be managed solely or primarily to minimize inflation) will change in the foreseeable future.

Feb 06, 2013 7:38am EST  --  Report as abuse
randburg100 wrote:

Analysis: Euro overshoot will rekindle bloc-wide tensions

Anything to hasten the demise of the 4th Reich!

Feb 06, 2013 1:04pm EST  --  Report as abuse
areddy831 wrote:


The US once faced a very similar situation circa 1896. Remember the “Cross of Gold” speech? Ultimately, any nation or political entity with more than one citizen will face conflicts of interest between different groups of citizens. The challenge is finding the middle ground that lets the resulting society succeed as a whole. The euro zone is still stronger as a whole than it would be separate.

Feb 06, 2013 3:49pm EST  --  Report as abuse
dareconomics wrote:

The divergence between the PIIGS and the FANG continues. Which group is France part of?

Feb 06, 2013 7:52pm EST  --  Report as abuse
scythe wrote:

another anglo-saxon columnist wringing its hands in fear
that the euro may become stronger than the dollar and pound

the titanic: trillion dollar debt-laden economies of the us and uk

many more billion dollar fines on the way for banks and rating agencies
the us treasury is running out of money

Feb 08, 2013 7:03am EST  --  Report as abuse
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