Originally Posted by sperbonzo

Actually, he's quite correct. Currency exchanges allow the productivity levels of a country/culture to be reflected in the value of their currency, thus when that level drops, the cheaper currency encourages exports, as well as investment, and helps to stabilize an economy. However, when a low productivity situation, like Greece's, is tied to the same high currency value as a high productivity situation, like Germany's , then there is no safety valve available through the devaluation of the currency.




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