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Check this out, what do you think is in store for the Euro and will the dollar be able to hold long-term against the Euro?
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I think that the Euro will continue its downward spiral at least for the remainder of the year. The experts seem to be in agreement that it will have trouble holding up against the dollar as strongly as it has done in the past. (This is great news for those of us going to Europe for post-graduation travel and teaching grants.) However, I don't think that it will hold up in the long run. Multiple countries within the Euro zone, namely Germany, manage their money better then the US and for this reason they should be able to shift the currency in their favor.
ReplyDeleteI think back to the video we watched in class on Tuesday where Stiglitz pointed out that given faith, Greece will easily be able to pull through its crisis, but without faith (meaning very high interest rates) they don't stand a chance. I think the Euro is in a very similar position. If it could stabilize and hold value I think it would be easier for nations to pull through the current difficulties.
ReplyDeleteI agree with Ashlee in that I don't think we're going to see the Euro get stronger anytime soon. The uncertainty that exists with much of the Eurozones economies mixed with Germany's recent actions are going to make people skeptical about the Euro for a long while, making it hard for it to recover.
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