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  • Subject: Could the Euro work like this?
Subject: Could the Euro work like this?
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Instead of all the Euro countries having the same currency pegged at Germany's level, why not keep them pegged at their own independant level?

For example every country has the Euro however something in Greece would cost more than in Germany, that way they can have the same currency and not bother to change it.

Or why not try and merge nations together to increase the GDP of said nation to match the nations with Stronger economies so they can have a working 1 currency union.

  • 12.13.2012 11:24 AM PDT
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Currency is bought and sold on the open Foreign Exchange market - if I went and wanted to buy Euros, which Euro would I end up with? The German one? The Greek one?

And once you start making those distinctions, you are back to each country having a different currency.

[Edited on 12.13.2012 11:26 AM PST]

  • 12.13.2012 11:26 AM PDT
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Posted by: A Good Troll
Currency is bought and sold on the open Foreign Exchange market - if I went and wanted to buy Euros, which Euro would I end up with? The German one? The Greek one?

And once you start making those distinctions, you are back to each country having a different currency.
You wouldn't get a seperate currency, you can take it to any other country only the amount you pay would change.

Say you pay 20 euro's for a beer in Greece you can go to Germany without changing the currency and spend 14 euros on a beer.

Im not into economics or anything so im clearly ignorant on this.

[Edited on 12.13.2012 11:29 AM PST]

  • 12.13.2012 11:28 AM PDT

Do everyone a favor, get some intelligence, grow a set, bust a nut, and shut the fu­ck up.
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Posted by: Android Spartan

Im not into economics or anything so im clearly ignorant on this.


Quite true.

  • 12.13.2012 11:31 AM PDT
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Posted by: Android Spartan

Posted by: A Good Troll
Currency is bought and sold on the open Foreign Exchange market - if I went and wanted to buy Euros, which Euro would I end up with? The German one? The Greek one?

And once you start making those distinctions, you are back to each country having a different currency.
You wouldn't get a seperate currency, you can take it to any other country only the ammount you pay would change.

Im not into economics or anything so im clearly ignorant on this.

Prices already vary between countries though. A loaf of bread in Germany costs a different amount of Euros than a loaf of bread in Greece.

The problems with a currency union exist on a higher level than that. Since the Euro operates under a central bank and a central money supply, when the European Central Bank decides "I see risk of deflation in general - I'm going to print more money" that affects the economies of all member nations using the Euro - whether that hurts or helps them.

  • 12.13.2012 11:34 AM PDT

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OP, what you're describing is exactly like having different currencies, but they all just look the same.

But yes, you get a gold star for pointing out that separate currencies would help remedy the financial crisis in the EU.

  • 12.13.2012 11:44 AM PDT
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Posted by: theHurtfulTurkey
OP, what you're describing is exactly like having different currencies, but they all just look the same.

But yes, you get a gold star for pointing out that separate currencies would help remedy the financial crisis in the EU.
Would the 2nd idea work?

  • 12.13.2012 11:46 AM PDT
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It would probably end up ruining it as people would flock to places where its cheaper.

  • 12.13.2012 11:47 AM PDT

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Merging entire nations together? I don't think that'd be a good idea.

  • 12.13.2012 11:49 AM PDT
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Posted by: Elfionnio11
It would probably end up ruining it as people would flock to places where its cheaper.
But then wouldn't that cause the prices to rise?

  • 12.13.2012 11:51 AM PDT
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Posted by: Android Spartan

Posted by: Elfionnio11
It would probably end up ruining it as people would flock to places where its cheaper.
But then wouldn't that cause the prices to rise?

OP understands that demand causes prices to rise. See, he is not so bad after all.

  • 12.13.2012 12:05 PM PDT