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by Propelloni
425 days ago
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OK, I've heard of the second part about being unable to devalue the Euro because it basically reflects the economic power of the Eurozone as a whole and that e.g. Greece leaving the Eurozone could have helped Greece in 2008. But as a whole I'd guess that especially export-focused Eurozone members like Germany would welcome a depreciation of the Euro. At the very least I think they would not try to bolster it. It does, however, not bring me any closer to understanding the "exporting unemployment" statement. I guess it is some kind of multi-step reasoning that is eluding me, or maybe it is an example of a control illusion? I don't know. |
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Yes, but only if it is guaranteed that their imports would depreciate similarly. Otherwise, say, Germany would devalue the Deutsche Mark but then run into the risk of importing produce from The Netherlands at a higher cost.
> It does, however, not bring me any closer to understanding the "exporting unemployment" statement.
The monetary policy after the 2008 crisis forced poor countries to cut public spending so that industrial economies could be bailed out. As a metaphor, the potentially unemployed factory worker from Germany was replaced an actual unemployed public service worker in Greece.