Euro’eka?!?

IIPM PUBLICATION

Also, if the dollar suffers classic economic ills (like not being ‘Gold Standard’!), the euro is no better, suffering those ills and sometimes much more. But more than this, euro’s biggest structural criticism, of late, has been that the euro model – that is, one size fits all – is not a foolproof one. There are different economies in the union, which leave the Central Bank with little leeway to manoeuvre. As Philippe d’Arvisenet, Group Chief Economist, BNP Paribas Economic Research points, “Monetary policy in the eurozone is unique because of the inflation spreads between countries, which means that monetary policy does not have the same restrictive or accommodating impact from one country to the next.” The appreciation of euro itself has created quite a bit of conflicting stir amongst the EU members. At one end, while there is Germany running surpluses and seemingly little affected by the euro rise, on the other, there are pilloried economies like France and Spain.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative