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I never claimed that Navarro was correct on that. Just that, overall, the effect of net German policy is to vastly favor German interests over those of the rest of the Eurozone. And floating currencies have to be understood in a broader context than just monetary policies. Do you argue that, were Germany to repudiate the Euro and reestablish the Mark that that mark would be valued at about where the Euro is today?

Few here would, I think. The existing situation with currency value and the competitiveness of the various national economies comprising the Eurozone is highly complex. Competitiveness can be rigged in a variety of ways. Germany does so in no small part because of the Hartz 2 agreements and in ways that also disadvantage the average German.

I did not see enough actual economic analysis from Navarro to tell what his position on German currency manipulation was. Perhaps I misread. But German exports are undervalued compared to what they would cost were Germany to have its own floating currency and Germany has been quite clever in crafting this arrangement to the benefit of German elites.

A more accurate statement would be that Germany has, effectively, managed to undervalue its exports, largely at the expense of its Eurozone partners. The problem I have with that is that it doesn't pass the smell test for me and a lot of others, mostly the victims.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Feb 8th, 2017 at 10:10:16 PM EST
[ Parent ]
To be clear, the "that" in the last sentence of the above comment refers to what Germany has accomplished for itself economically via the Euro, the Eurozone and Germany's resulting economic policy and political efforts.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Feb 9th, 2017 at 03:28:36 PM EST
[ Parent ]

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