In particular, more European countries will look to investing in US assets causing an appreciation of the dollar. This will spark further conversation and debate as to whether the Greeks should drop the use of the Euro and revert to their own currency as their actions have intense ramifications across the European Union as well as into other countries such as the United States.
Tuesday, March 23, 2010
Greek crisis may hit US economy: Fed regional chief
All the news surrounding the troubles in Greece may affect the United States economy as well according to Atlanta Federal Reserve regional chief, Dennis Lockhart. The Greek debt crisis may affect American exports, as the European Union represents the largest destination of US exports.
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2 comments:
I think this article does a good job of highlighting one of the severe disadvantages of using the euro over one's own currency. Since the Greeks adopted the euro, they can no longer simply print their own currency as an expansionary monetary policy. It will be interesting to see whether or not they do in fact revert to their own currency, as well as the European Union's response to such an action.
I think its interesting that someone finally brought up how this crisis in Europe has the potential to hit the US. And clearly the EU has huge problems and the crisis has clearly highlighted and exposed some of its problems
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