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Politics : Foreign Policy Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (2954)	1/29/2003 11:19:04 AM
From: zonder	Respond to of 15987

Do you think the USA is responsible for EU economic woes.? No. Re EUR/USD - I feel the "woes" are woefully exaggerated. (1) Eurozone is a relatively closed economy, with exports at only about 15% of GDP. (2) Last year, when EUR appreciated by about 15%, Eurozone exports increased by 1.1%. In all, higher EUR is not good for Germany, whose slight increase in exports was the only thing keeping them from recession last year. However, it is not such a big deal for the Eurozone in general. If necessary, ECB has a lot of room to lower the interest rates (currently at 2.75% repo) to stimulate the economy and depreciate the currency. I hope this has answered your question.