Who Really Gains from the Euro?
Who Really Gains from the Euro?
http://www.theglobalist.com/storyid.aspx?StoryId=9348
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Not surprisingly, the Southern members do not tire of arguing that Germany gains the most, obviously to the South’s detriment. As proof, they contend that Germany (and other Northern members) are running sustained and increasing trade surpluses with the Southern members. In effect, Europe’s South argues, it not only creates jobs in Germany but also transfers jobs from South to North.
Sounds familiar, does it not ? Germany is a mini China in Europe...
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Is the conclusion of all this truly surprising? The real devaluation of Germany in the eurozone (higher inflation in the South means the Southern countries had a real revaluation and Germany a real devaluation) is not what Germany engineered. Nor does it suit Germany (although it suits the country’s exporters) — and it causes losses in terms of less investment and employment in the country.
IMF became a bailout machine?
