Monday, December 6, 2010
Euro don't go
This article discusses the blow out to countries in the euro zone if they moved the Euro. Besides the tremendous costs involved in a country reprogramming its entire economy to be represented in a different currency, the devaluation for the weak countries or appreciation of currency for the strong currency would cause chaotic capital flows that would hampered business process in Europe and the worldwide. Agreed Neither Germany and Netherlands do not what to be held responsible for Greece and Ireland's failure, nor do Greece and Ireland wish to suffer under the Euro but even though the economic bail outs are not as effective a change in currency would only harm their respective economies
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1 comment:
I agree with the article. I think a move back to national currencies from the Euro would be detrimental for the EU. The Euro is one of the main foundations of the Economic and Monetary Union of the EU and without it the whole organization would be in danger of collapsing. This would have further ramifications for potential political unity in other aspects of the EU such as the common foreign and security policy, since these are built on the underlying foundation on an economic union.
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