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Why has the pound value gone down?
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I think it was overvalued to begin with. At least towards the euro, the dollar is also too high. This helps eurozone though, with almost non-existant inflation and QE, it is finally understanding the politics US did. I do not agree with that, I think it is a fundamental mistake which will bite hard when the interest rates will go up again, but at least helps the economy. Hopefully, taxes for big companies will also follow the current trend up, otherwise it will be a total disaster.
why cant we all just use one currency? it definitly would make things easier for all of us.
what a silly idea.
next you be calling for a 1 world govt.
Are you spewing out random gibberish, while being high again Mao..... You really need to get your problems taken care of.
There was a knee-jerk over valuation which is correcting itself slightly.
why is it silly? couldnt we all just jump into the euro zone and live happily after?
Sounds pretty reasonable actually...
sadly... probably not.
what kind of person would want to do such a thing. the EU is undemocratic at it's core and only does harm to the countries.
*euro
Isnt that bitcoin?
We could, but then you'd be paying about 76,000,000 euros a day to be a EU member (Roughly). Not to mention there are quite a lot of problems with having just one currency, I cant remember them in detail, but from my limited understanding, its supposed to be a rather bad idea...
Harm? isn't the EU about protecting all countries within it as TEAM? i know that in my country the EU isnt welcomed much because it asks us to ship money to already failed countries but at the same time we can count on backup from other countries in the EU when in war - what is worse? the EU sounds to me like a protocol to fight off war together - all united -> general rules we all have to hold on to for peace.
I dont know much about this matter but this is what is going on in my mind right now.
The pound isn't weakening. The dollar is getting stronger against everything because the Fed is expected to raise interest rates soon.
Time to buy currency for the wife's trip to the U.S. then!
Yeah it's the dollar that's moving. CAD has weakened a lot against USD over the past 12 months.
This.
Different economic areas use monetary policy to improve their local economic performance. While the system is far from perfect, having multiple currencies allows local governments to react to local problems more effectively. I'm not an economist but there's a lot of monetary policy work, particularly among nations that do a lot of import or export.
Well, that's the theory anyway.
@yomero is going to the US?
My GOD! What a great surprise
Starts packing stuff
@yomero are you my wife? If so, please prove it by telling me what you've made me for tea tonight.
LowEndCurry
There used to be one world currency. It was called gold (and silver), that did not work out too well, and there were still plenty of wars.
Nothing! Because I'm lazy
And now starts unpacking u_u
I thought that was the rumor...or was it @netomx you were involved with...
No need to be an economist to have common sense.
Indeed, the problems greece faces are because it cannot devalue it's currency, in big part. If it could, would have printed money, get inflation and default without problems. Sure,t he default in itself is a problem, but that can be lived with, would have not generated 25% contraction of GDP, more like in the region of 15% or so, and then export would have been boosted, vacations cheap and currency inflow would have been stable so after a nose dive, the drachma would have stabilized and then follow the country's power to generate added value.
Because is using a currency too strong for it's economy power, greece cannot manipulate it to subtly re-arange internal revenues to match productivity, so, it has to painfully remove all the industries and workers which are inefficient all of a sudden (a few years to put 1/4 of the population out of work is not sustainable, IMO).
I am afraid Romania will join Euro too without being able to afford it in terms of productivity and social spending, however, fundamentals here are way better than in greece and problems will be much smaller in case of a crisis, at least as the situation is today, but incompetent governments can always come with the illusion of stability and spend too much encouraging inefficiency and driving the country to ruin without much valves to let out the pressure.
I'm rick James bitch