david_chisnall on Nostr: npub1g0tuf…3tvm4 I’m a little bit skeptical of this. How much of Germany’s ...

npub1g0tuf634rz4suczwj7kgnecr6cyt0eu9xmp3sp0fku68mqehq4msp3tvm4 (npub1g0t…tvm4) I’m a little bit skeptical of this. How much of Germany’s contribution, for example, is possible only because they have a currency that is artificially devalued relative to their economy to stimulate exports? When the Euro was introduced, German economists warned that providing a single currency across very different economies would make exports harder from poorer countries (by artificially increasing the value of their currency) and easier from richer ones and so would drive a transfer of wealth from the poorer countries to the richer ones. Looking at the magnitude of the lines on that graph, it looks smaller than their recommended correction factor (which had a goal of improving the economic output of the poorer countries until the Eurozone was full of similar-speed economies). The fact that this redistribution is still needed suggests that it hasn’t worked (and I know that the UK, Germany, and France vetoed their proposals).