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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Sig who wrote (97054)	5/1/2003 10:44:00 AM
From: Ilaine	Respond to of 281500

>>Is there a possible connection to avoiding the Euro dollar?<< Interesting observation. As you no doubt know, the only way for all these different countries to have the Euro as their own currency is to "harmonize" their economies. This is almost exactly the same thing as pegging your money to someone else's money - when their economy swings, yours does to. Only in the case of the Euro, they've all agreed to minimize the swings. This means that they have to give up independent government intervention, for example, Germany can't cut interest rates in order to get out of high unemployment. That's the down side. The up side is that they don't have to worry about foreign exchange rates within the Euro community. Here in the dollar community, we prefer to allow Greenspan to slow down and speed up things so we avoid high unemployment, and we accept changes in foreign exchange rates. History tells us that the Europeans haven't been able to fix exhange rates for very long before things break down, but even if they finally get it right, we prefer independence from Brussels and Bonn -- which is one reason they call us "cowboys." We love Greenspan, they hate him. We don't think planned economies work, and right now, those "funny" countries in Eastern Europe don't either.