Sentences with phrase «weak euro countries»

Germany is reluctant to proceed rapidly on either since it would mean that Germany would have to absorb the financial and sovereign risk of the weaker EURO countries.

Not exact matches

But the mechanics of the euro guarantee escalating tension: The single currency makes the exports of weaker countries artificially expensive (and those of Germany excessively cheap), putting their economies at a crippling disadvantage.

While China is usually singled out for its policies, other countries have behaved more irresponsibly, most notably rich Germany, whose surpluses, the largest in history, were built primarily on an undervalued currency, after the creation of the euro, and on weak wage growth, after the 2003 — 05 labor reforms.

Some years ago Mundell, looking at economy sizes, growth rates, percent invested overseas, etc., concluded that a dollar / euro relationship between $ 1.20 and $ 1.30 could be considered normal, or neither to strong nor too weak for either country.

In addition to a weaker euro, which helps fuel its export - oriented economy, the cost of financing its sovereign debt relative to its existing debt continues to fall while the smaller countries struggle with rising financing costs.

Eventually, the gap between strong EURO countries and weak EURO counties could become so large that the strong counties would become incapable or unwilling to continue to fund the weak countries.

Global economic conditions have improved over recent months, with stronger economic data emerging in the US, Japan and most other countries in east Asia, though the euro area remains weak.

Another theory floating around is that if the weaker countries of the euro leave (e.g. Greece, etc) and the core keep the euro, then the value of the euro will actually rise.