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View Diary: New: concern trolling the euro (241 comments)

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  •  In other words (0+ / 0-)

    all the arguments by the Democratic Congress in the 1980's against Reagan's strong dollar policy...

    The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.

    by deathsinger on Tue Nov 27, 2007 at 10:47:05 AM PST

    [ Parent ]

    •  The point is... (5+ / 0-)

      ...that your currency valuation is a reflection of your economy, not the other way around. If your country is generating useful goods and services that can be exported, your currency rises. If not, it falls.

      Of course, there are second-order effects where rising currency causes exports to be more expensive thus hurting them, etc, but they are second order effects. The economy is the driving force in currency valuation.

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