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Originally posted by sperbonzo
I'm not sure that understand economics very well.... The weak dollar is GOOD for the US economy.
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Not necessarily, it is good for exporters.
But in the US exporting is a relatively small part of the US economy
compared to your typical european or asian economy (if you doubt that just look at the trade deficit on a country by country basis)..
And as you say the strength of the euro has kept european economies relatively slowly growing.. Who does this hurt? Europeans yes, but also the US economy because europeans buy a fuckload of US goods :/
Another reason against having a weak dollar that you seem to approve is, is that on purchasing power parity a weak dollar makes United States assets cheaper to the rest of the world.
Which in effect makes Americans poorer. If US dollar being weak was GOOD for the economy, then that would be the official policy of the treasury, but it's not, a STRONG dollar is.
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The EU is getting DESPERATE to try to weaken the Euro. The reason why the unemployment rate in most of the EU is twice what it is in the US has a lot to do with an overly strong Euro. It is killing EU exports, just as the weak dollar is doing great things for US exporters and manufacturers
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Of course EU exporters would love a weaker euro, or more correctly a
stronger dollar. However the ECB has not intervened, at least in the last few years, they will let the market be, or at least until the pressure from exporters gets too hot.