Quote:
Originally Posted by Adraco
The Euro is a good idea, of bringing a continent, with a history full of wars, closer together. Instead of fighting Europe now trades.
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You don't need a common currency to trade, and devaluation is not just a trick, it is a function of the world currency exchange. The fact is that in an open world market, countries whose economies are not productive will have their currencies devalued whether they want them to or not. The only way there is a "trick" is when a country decides to "peg" their currency trading to another countries currency to artificially support their own economy.
In the case of the EMU, that is exactly what all of these diverse markets have done. In effect, they have all "pegged" their currencies to each other, and I think that in the end, it will fall apart.
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