Re:Croatia to switch to euro, enter passport-free Schengen zone
by maygeimen on Sunday January 01, 2023 @01:56AM
(#34204257)
People downvote your comment, but they forgot the fact that EURO lost something like 25% of it's value against US dollar in the past year alone... meanwhile even russian ruble (!!!), in the most sanctioned country in the world, increased it's value. With such "achievements" it will not take a lot of time for Europe to become the world's poorest continent.
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Re:Croatia to switch to euro, enter passport-free Schengen zone
by senko on Sunday January 01, 2023 @06:12AM
(#34205418)
Much of that EUR/USD value loss was actually USD rising a lot compared to many other currencies.
Look at the US Dollar index, which compares it to a basket of 6 other globally influental currencies: https://finance.yahoo.com/quote/DX-Y.NYB?guccounter=1
This happened primarily due to the quick rise in US interest rates, making USD more attractive to hold.
Additionally, Euro slid down due to the energy crisis and a war on the EU's doorstep, not because Euro as a concept doesn't work.
Re:Croatia to switch to euro, enter passport-free Schengen zone
by cm2187 on Sunday January 01, 2023 @07:00AM
(#34205647)
The euro zone has a 10% inflation, higher than the US. The reason it does not raise rates is because of the sorry state of EU economies and public finances. That means inflation will remain elevated. I don't know if "work" is the right term. Some people seem to be very happy with money printing and cheap credit. They just don't like the consequences of their own actions.
A country that keeps rates at 2% when inflation is 10% has a fool (or a lawyer) as a central banker.