Devalue the Euro

[Warrior]

God knows I’m no economist (you can never find one anyway when there’s an economic crisis – they disappear into the woodwork) and the machinations of international finance are a mystery to me, but wouldn’t now be an ideal time to devalue the Euro?

I know that devaluation eventually leads to inflation but it doesn’t happen overnight, and yes, I’m sure there are a lot more drawbacks to it – but think of the benefits.

It makes exports more attractive and cuts down on imports. (What happens if China decides it wants to balance its books?) It would kick-start the building industry here in Spain and boost tourism. Just think what it would do for our pensions!

Now I’m sure there are many reasons against devaluation (as Harold said: ‘It won’t affect the pound in your pocket’ – No, but when you took it out to spend it, it did.) but I can’t think of many……………..

[chrisb]

i've always been against a single currency. Spain should never have changed to the euro. When things turn bad economies usually have their currency to fall back on. The UK would have been 10 times as worse if it had been in the euro during this financial mess. The devaluation of the currency is like a buffer and helps promote export and in turn trade.
I can't see a way out for Spain at the moment. they'll just have to tough it out until the world economy picks up again