Comments on: Sterling and the euro http://timworstall.com/2009/06/14/sterling-and-the-euro/ It is all obvious or trivial except... Sat, 11 Feb 2012 18:45:24 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Adrian Fox http://timworstall.com/2009/06/14/sterling-and-the-euro/comment-page-1/#comment-30697 Adrian Fox Mon, 15 Jun 2009 07:22:36 +0000 http://timworstall.com/?p=7763#comment-30697 This overlooks the essential fact that the discipline of the euro imposed by the ECB (with some exceptions) prevented the extremes of financial mismanagement by the banks and other institutions seen in the UK, not in Germany, France and many other EU countries. Of course, they are suffering the impact of the world financial maelstrom too, but I suspect the Eurozone will come out of the crisis fundamentally stronger than the weakened UK economy, with a generation of debt to repay through significantly increased taxation. Tim adds: Eh? German banks fell over just as badly as UK ones. Latvia and places like that which have a currency peg to the euro are bust. This is better than a floating currency? This overlooks the essential fact that the discipline of the euro imposed by the ECB (with some exceptions) prevented the extremes of financial mismanagement by the banks and other institutions seen in the UK, not in Germany, France and many other EU countries. Of course, they are suffering the impact of the world financial maelstrom too, but I suspect the Eurozone will come out of the crisis fundamentally stronger than the weakened UK economy, with a generation of debt to repay through significantly increased taxation.

Tim adds: Eh? German banks fell over just as badly as UK ones. Latvia and places like that which have a currency peg to the euro are bust. This is better than a floating currency?

]]> By: jus'askin http://timworstall.com/2009/06/14/sterling-and-the-euro/comment-page-1/#comment-30671 jus'askin Sun, 14 Jun 2009 10:08:36 +0000 http://timworstall.com/?p=7763#comment-30671 No doubt he will overcome all difficulties & succeed. No doubt he will overcome all difficulties & succeed.

]]> By: Matthew http://timworstall.com/2009/06/14/sterling-and-the-euro/comment-page-1/#comment-30668 Matthew Sun, 14 Jun 2009 09:25:20 +0000 http://timworstall.com/?p=7763#comment-30668 Well it's basically the same as imposing a 20% tariff on imports to fund a 20% subsidy for exports. I think similarly the short-term benefits are outweighed by the long-term costs. Well it’s basically the same as imposing a 20% tariff on imports to fund a 20% subsidy for exports. I think similarly the short-term benefits are outweighed by the long-term costs.

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