Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
There's a fairly commonly-stated German opinion that it doesn't matter if the euro rises, Germany will still be an export champion (one economist or whatever said that a euro at 1.45 USD would not be a problem). And that view is supported by Artus's price elasticity numbers, since German exports are at 0.3, very inelastic (meaning they don't have to reduce their prices to clinch deals).

However, the ROEZ as a whole tends to moderate the position of the euro wrt other major currencies. The view often stated here is that, if Germany still had the DM, it would be considerably stronger than the euro. In fact, it would strengthen as a function of German export volumes. That would crimp Germany's style. So it is reasonable to think that Germany gets an advantage from the euro.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Nov 28th, 2013 at 05:41:19 AM EST
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