I would have thought the opposite. Economic activity notwithstanding, but if a currency is under threat (i.e. the Euro) would that zone's central bank (ECB) not increase interest rates in the short term to protect its very existence? By increasing interest rates, the currency would then become more attractive. Or another way of putting it, with interest rates higher, capital would be less likely to flee to other currencies.
Currency devaluation and rapid inflation would sort this country out very nicely.
No, wages will remain largely static, imports will become expensive and the standard of living will drop homogenously. Once we get going a bit wages can rise and then debt will be reduced.
I'm kind of talking about inflation within the eurozone which will drive up imports from wihtin those countries. At the end of it we reduce our place in the world and get competitive whilst still cleaning up our personal debt situation. Once they don't go too crazy wtih interest rates I see this as our best chance of fixing ourselves.
I'm kind of talking about inflation within the eurozone which will drive up imports from wihtin those countries. At the end of it we reduce our place in the world and get competitive whilst still cleaning up our personal debt situation. Once they don't go too crazy wtih interest rates I see this as our best chance of fixing ourselves.
A weak Euro is good for Ireland as it stimulates exports and makes it cheaper for American and UK firms to set up here (so more jobs).
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