Thu, Oct 30, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | Currencies more

Here’s why Europe must do more to save its currency union

Posted on 17 October 2012

The battle to save the euro turns on one question: Can large governments, notably Italy and Spain, get their debts under control? Because they are in a monetary union, they can’t take the easy way out by devaluing their currencies to make their obligations smaller and exports cheaper relative to those of other countries.
Instead, they have to make painful budget cuts and slash workers’ wages to restore their competitiveness — moves that, in the short term, can make their debts less manageable by eroding economic growth. If the belt-tightening proves too much to bear, or if markets lose faith in their ability to succeed, the euro area will break apart………………………………………..Full Article: Source


 Article link

This post was written by:

VRS - who has written 37718 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

banner
October 2014
S M T W T F S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031