Euro stimulate trade .. And adoption of an uncoordinated

Group of 20 defuse 'currency war'

Resulted in the euro since its adoption ten years ago to stimulate trade between the countries that adopted and contributed to the containment of inflation, but the reflection on the growth was not up to expectations, due to lack of coordination between the economic policies of various countries, experts say the economy. The head of the Economics Department at the Bank of Komrzbank German Jorg Kramer said there are benefits, but Agnès Benassi Kerry, director of the Center surveys and the Internet in France believes that the benefits do not appear clearly.

Monetary Union

In fact, the events taking place in the world currently fall under the proceeds of the euro, particularly as they shed light on the gaps in the monetary union, most notably the governance and economic integration. The adoption of the European currency was not in itself a bad move. Agnès Benassi said Kerry, based on recent studies that stimulate the movement of the euro exchange between countries that adopted it, not dramatically, but the level of 6%. Also that the transition to the single currency has had an impact on inflation.


The economic expert at the University of Bocconi in Milan; Francesco Jiavattza, that in the first phase benefited companies in sectors that do not have the ability to compete on a big move to the euro to raise prices, but Agnès Benassi Kerry drew in this regard that the prices of articles of daily consumption such as coffee and bread, that is risen, and not other materials, giving people the false impression that the euro has led to higher prices. In fact, according to French economic expert, it is the standard price stability, the outcome is very positive, with the average inflation level of 2%. German colleague said that southern European countries recorded inflation benefited low compared with the historical orientation, and this major breakthrough. The disappearance of currency risk has strengthened the integration of the European market.

In parallel, interest rates have declined significantly, due to be installed for all euro zone countries the level of benefits granted to countries including most of the sheet, such as Germany, including for countries that were borrowing at high rates, which was within the objectives of the adoption of the euro. Jorg Kramer said that the actual interest rates after correction in the light of the rate of inflation fell further. In countries that retained overall inflation rates slightly higher than average, as a result of economic vitality, such as Spain, this phenomenon has led to negative real interest rates encouraged borrowing and led to a flurry of real estate. She explained that Agnès Kerry Benassi nominal interest rates are equal, but the real interest rates vary. Among the benefits of the euro other consideration Francesco Jiavattza, that made it impossible for governments that pursue the lower the price of its currency to continue this approach. Italy was finally abandoned the idea that it can artificially compensate for shortcomings in the field of competitiveness, through successive reductions in the price of its currency.