Can anyone explain what's going on in layman's terms? Also, do you think it'll recover and rise back up?
I think that it's the way the European responsible people found to try to recover the economy, because this will mean more exports and more tourism. I think.
Gelsemium is right. The European Central Bank "is obsessed with fighting inflation." For that reason they will combat inflation no matter what it costs. So we expect that while the ECB fights inflation in the best way they can, the Euro will keep falling.
I have not even realised that the Euro is declining, never thought that they could do that on purpose because of the economy, that is smart thinking.
Smarter thinking would be to not get into the mess they're in now in the first place. Socialist fiscal policies have greatly hurt them over time.
Agreed with the last post. Those (socialist) chickens are coming to roost. While controversial, Thatcher had a point when she said "The problem with socialism is that you eventually run out of other people's money."
That's why I try to tell some of these guys here that we cannot just keep on borrowing, printing, and pumping money. Nor can we tax our way out of it.
Yeah the ECB wants to see a weak Euro since it helps out with companies that are exporting goods outside of Europe. Also they print money to keep the interest rates at pretty much zero in order to help the countries with HUGE debts and also in order to push companies into using this cheap money to expand. So yeah I think the Euro will keep declining, maybe eventually reaching parity with the USD.
Euro exchange rate was overvalued, and in the euro area started to have problems because of sanctions against Russia. And the growth of the dollar to all world currencies. There is also a retaliatory sanctions of product embargo by Russia. Food prices in Europe fell heavily, and producers suffer losses. The Russian ruble has fallen dramatically, Ukrainian Hryvnia, Turkish Lira and many currencies of the countries neighboring the EEC. This creates problems for European exports and tourism in Europe. EEC includes different countries. Speculators are afraid of the collapse of the Euro zone due to internal contradictions, Greece, etc. The ECB and the management EU very slow decisions. They need to lower taxes and more to help the private sector. Speculators do not like deflation and money began to flow into the dollar. Sorry if there are language mistakes.
