Season 2 · Episode 269
With Euro/dollar below parity, lets talk exchange rates
The David McWilliams Podcast · David McWilliams
August 30, 202236m 28s
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Show Notes
Within the Euro, given the vastly different economic structures and stage of economic development, some countries, like Ireland, have undervalued exchange rates and others, like Croatia/Italy/Greece have overvalued exchange rates. This means that Ireland experiences massive supply problems, in housing, transport, too much inward investment etc, while the others experience severe deficient demand problems, unemployment, emigration etc. This represents a permanent flaw at the heart of the system; will it be fixed in the next crisis? The solution is fiscal federalism, like Canada, USA or Australia, but who in Europe wants that right now?
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