€ failing
Out of context: Reply #26
- Started
- Last post
- 49 Responses
- CaP0
well, single currency as it is it's not just eliminating a the lira, peseta, franc and so on. it means a joined monetary politicy, economic aims, etc. it is very, very difficult to get this done: for example, so far interest rates are too low, which means the economy in some countries (spain, for example) is overheated. low interests mean the "value" of money is cheap, and that's needed, on the other hand, for bigger countries like france or germany to get things going (they're in a low moment now). so... if they keep this low interest rates, there's risk of local inflation in spain, but it's ok cos it'll take france and germany out of recesion.
it's very complex.
oh, and regarding your comment... that's something that can't be changed: you can't expect to get paid the same in london and leeds, cos the living expenses aren't the same (housing, eating, etc.). and that doesn't mean at all that london and leeds should have different currencies.