Wed Oct 26, 2016, 09:53 AM
Cyberpunk (4,602 posts)
Adoption Of The Euro Has Been 'Unequivocally Bad' For Southern European Economies
Some say that the common currency prevents less productive economies from cheating by weakening their national currencies and forces them to become more efficient and competitive. Industrial production data shows that it is not the case. Italy, France, Greece and Portugal have not only stopped producing more; they are producing now less than in 1990! The decay started immediately after the introduction of the euro in 2002!
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Adoption Of The Euro Has Been 'Unequivocally Bad' For Southern European Economies (Original post)
Response to Cyberpunk (Original post)
Wed Oct 26, 2016, 02:28 PM
oflguy (3,944 posts)
1. I'm not real knowledgable on European monetary policies
However I do know the countries within the European Central Bank authority are in a crisis mode. In 2001 The European Central Bank (ECB) took over control of the currencies of its member central banks. This means it also took over control of interest rates from the individual countries. Some say that was a good thing but in effect it meant a degree of competition economically between the countries was vanquished. And we all know what happens when competition is eliminated - less incentive to be efficient and productive.
When one of your main objectives is social equality, as ECB head Mario Draghi recently stated, it should be no surprise that the prosperity of European countries has suffered.
Just as in the USA, the ECB has had to lower interest rates to almost zero in order to stimulate their economies. Restoring individual leadership of countries to competant individuals and giving them power to control their own economies would go a long way to revitalize their respective countries' production.
The European Central Bank and the Euro should go.