Bibow, J. (2014) “On The Alleged Pains of the Strong Euro“, Social Europe Journal, 03 Απριλίου.
Since its most recent low of $1.20, reached in the heat of the summer of 2012, the euro has appreciated by 15 percent against the US dollar and by more than 10 percent in inflation-adjusted terms against a broad basket of currencies representative of the euro area’s main trading partners. Amounting to a significant loss in international competitiveness, representatives from a number of euro area member states aired fears that euro strength might undermine the area’s recovery from gloom. Members of the ECB’s governing council too expressed concerns about the euro’s exchange rate. ECB president Mario Draghi recently argued that the strengthening of the euro was partly responsible for the bank’s conspicuous miss of its two-percent price stability norm by an embarrassingly large margin, adding that the euro’s strength was “becoming increasingly relevant” in the ECB’s assessment of price stability.
In truth euro appreciation should attract neither fears nor blame. The euro area’s dangerously low rate of inflation owes primarily to domestic sources. Instead of debating the euro’s external value, it is high time for euro policymakers to concentrate on getting their own house in order. A sober assessment reveals that the supposedly too strong euro is at risk of turning into yet another scapegoat. Covering up euro policymakers’ unenviable record of staggering policy blunders is unwarranted.
Σχετικές αναρτήσεις:
- Gros, D. & Alcidi, C. (2014) “The Global Economy in 2030: Trends and Strategies for Europe“, Economic Policy, CEPS Paperbacks, 02 Απριλίου.
- Benassy-Quéré, A. & Vallee, S. (2014) “The Eiffel Group: A Political Community to Rebuild the Architecture of the Euro“, VoxEU Organisation, 27 Μαρτίου.
- Horne, P. (2014) “The Euro at Age 15 – Is it a Reserve Currency Yet?“, The European Institute, Φεβρουάριος 2014.