Friday 17 December 2010

The euro's value

The principle of a permanent stabilisation mechanism has been approved. The goal, as presented by the European leaders, is to save the euro as a currency. But was the euro under serious threat? Is it the euro as a currency that has been under attack, or something else? Or is it just the market playing with a currency that is overvalued?

Obviously overvalued, particularly if one takes into account the economic situation of some EU countries.

Wouldn't it be better for everyone, including for strong outlooking economies such as Germany, to have a currency that is closer to the value of the dollar?

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