Thursday, November 30, 2017

Europe from crisis save output

Europe from the crisis ... save the output of Germany from the eurozone

Until recently, many of the world
Media together have written articles that Greece
had to leave the eurozone, but now
all at a time and this issue ustakanilos
rises much less. Also,
some economists strongly
We agree with the wording of that
Greece should leave the eurozone. In their
According to the survival of the union of the euro zone
must leave Germany because Grexit
in fact it will not change anything.


Ironically, experts
even lead a reasonable reasons why
it is necessary to exclude Germany from
number of participants in the single currency
Union. If Germany will be released from the
the euro zone, the euro expected devaluation and
This, in turn, will be saving
a breath of air for the countries, such as
Greece, Spain, Italy and Portugal.
This country really needs a weak currency,
to regain competitiveness
their products in international markets.
After the devaluation of the euro Southern European
countries will be able to increase exports,
restore the balance of payments, increase
the scale of domestic consumption and,
finally achieve normal levels
inflation.


But now all these countries
They are in some limbo
I am trying, on the one hand, to achieve growth
the economy, and on the other, trying to
cut government spending under
the pressure of austerity measures, which
Union imposed and - increasingly - Germany.


Indeed, the current
euro largely held high rate
only through "weight" large German
economy and demanding politicians. Demand for German investors
assets is still high, and this contributes to
capital inflows into the euro, which in its
turn right and does not allow the currency
decrease.


According to Professor
Princeton University Ashoka Mody,
followed by Germany, the eurozone must
leave the Netherlands, Belgium, Austria.
They, if they want, can create a new,
its own monetary union. "Exit
those countries of the eurozone will further
severely weakened the euro and, consequently,
give a chance to rebuild the country
south"- says Modi. He also claims,
that Germany itself will benefit from this
process because the new German
brand will cost more than the current
euros, and German consumers get themselves
access to cheap goods. Current
Germany's trade surplus
only hurts the global economy, says
Modi.


Recently, similar thoughts
He shared the former head of Fed Chairman Ben Bernanke.
Excellent results in Germany
possible to achieve due to the powerful
exports, by which is incremented
trade surplus and retained
capital within the country. If not for a single
currency, to achieve this would be impossible.
Bernanke said that while the embodiment,
when Germany is using the German
brand, imbalances in the economies of Europe
countries would be eliminated by changing the
exchange rates. That is the German currency
It would be a little more expensive in relation to the
currencies of Greece, Italy and Spain, and it
would allow their goods to keep
competitiveness (the price for them,
It is likely to be much lower than German
analogues). But, as we know, with the transition
euro manufacturing industry
south of Europe have become extinct, and failing
to overcome the competition - German
producers - in the single currency
field.



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