[lit-ideas] Re: lit-ideas Digest V1 #129
- From: Judy Evans <judithevans001@xxxxxxxxxxxxxx>
- To: lit-ideas@xxxxxxxxxxxxx
- Date: Tue, 16 Nov 2004 18:29:19 +0000
Thank you, Teemu. I agree a strong Euro is not all bad news!
Tuesday, November 16, 2004, 8:54:02 AM, Teemu Pyyluoma wrote:
TP> As far as I understand, the basic problem is that
TP> China has pegged its currency to USD. Now given that
TP> half of the trade deficit is with China, lower dollar
TP> will do nothing to fix that. It's Asia in general that
TP> has the biggest problem with this, for Europeans it's
TP> a mixed blessing as The Economist writes:
TP> less of a fuss on Monday than Europe?s did. [...] But
TP> why all the worry? In some ways, the stronger euro
TP> will [..] contain euro-area inflation, which has
TP> remained stubbornly above the ECB?s ceiling of 2%. It
TP> will offset the higher dollar price of oil?last
TP> month?s worry du jour. And if the euros in their
TP> pockets gain in value, European households might be
TP> more willing to spend them, overcoming the caution
TP> that has held the European recovery back for much of
TP> this year."
TP> http://www.economist.com/agenda/displayStory.cfm?story_id=3372405
TP> Cheers,
TP> Teemu
TP> Helsinki, Finland
--
Judy Evans, Cardiff, UK
mailto:judithevans001@xxxxxxxxxxxxxx
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