2012 January 08 Sunday
Great Times In Germany While PIIGS Suffer

Something is fundamentally wrong with a currency zone where Germany has the lowest unemployment rate in over 20 years while southern Europe has depression-level unemployment.

There are some bright spots as Europe enters 2012. The recent drop of the euro currency against foreign rivals like the yen and the dollar makes European exports more competitive — a critical advantage for Germany, Europe’s largest exporter and its largest economy. German unemployment now stands at 5.5 percent, the lowest since German reunification.

Not blaming the Germans. Just saying the euro is obviously not a one-size-fits-all currency zone.

Share |      By Randall Parker at 2012 January 08 02:43 PM  Economics Sovereign Crises

commonwealth contrarian said at January 13, 2012 8:27 PM:

It seems that countries like Italy and Greece are putting the consumer interests of pensioners ahead of the worker interest of younger people - not surprising in an aging democracy. Access to the Euro means pensioners get cheaper food, gas and petrol, but it's bad news for industry, agriculture and tourism.

Meanwhile Germany's benefits from a relatively low currency and high exports.

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