Greece Was Doing Better Before It Joined The Eurozone
Posted by Phoenix Woman on July 12, 2015
Something you won’t see on network TV anytime soon:
Greece GDP per capita nearly tripled in the 15 years prior to it Greece adopting the euro. It has been a disaster since then. Maybe the crisis is about the idea of the euro, not just about Greece.
And while Greece has been suffering, guess who hasn’t been? That’s right, Germany:
But whatever its failings, the creation of the Eurozone has been a boon for Germany. As an export-driven economy, the common currency has provided Germany with captive export markets where it can sell its goods with no fear of its currency value rising against that of nations that buy its stuff. Germany has outperformed all other countries in the Eurozone since its creation, and there are structural reasons why that go beyond traditional images of German workforce discipline and superior engineering.
In Europe, the creation of a single currency has allowed Germany to avoid the need to adopt economic policies to manage the value of its currency relative to its trading partners. Since the creation of the Eurozone, Germany has been able to sell as much stuff as it wanted to across Europe with no resulting pressure on the Deutsche Mark, for the simple reason that there no longer is a Deutsche Mark. As an export engine, Germany has been able to build its manufacturing economy at the expense of other European economies with no fear of having to address a rising currency value.
So maybe a #Grexit wouldn’t be quite the disaster for Greece that the Germans claim it would be.
Sorry, the comment form is closed at this time.