Now Here Is A Central Bank Doing It's Job

Discussion in 'Economics' started by Aaron Copland, Apr 15, 2008.

  1. The ECB is the other end of the spectrum of extremes. The strong Euro is killing half of the Euro area. In effect, they're causing their own inflation by keeping up a high Euro to the low dollar. Look at the other currencies - GBP, AUD, NZD, CAD...they're all at record lows or thereabouts against the EUR. By keeping the EUR high, it keeps the dollar low. This drives up commodities and causes the very inflation the ECB hawks on about. It's a feedback loop.

    I'm not saying inflation is the ECB's fault. It's the Fed's. But the ECB certainly isn't trying to make it better.
     
    #21     Apr 15, 2008
  2. What? Seriously explain that, cause it makes no real sense.

    The real effect of the Euro being high against the respective national currencies is that it gains power & dominance against the national currencies, eventually rendering them obsolete.
     
    #22     Apr 15, 2008