Will the troubled euro survive?
U-T Econometer Panelists provide comparison with the dollar
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, August 28, 2011
Kelly Cunningham, National University System
The euro will not only survive but will continue to increase in value relative to the U.S. dollar. Germany, the largest and richest country of the euro-zone, primarily sustains the euro. While hard-working Germans may resent transferring their taxes to less responsible countries with earlier retirement and shorter work weeks, German businesses competitively benefit because the fixed exchange rate insulates their exports from competitive currency devaluations and random fluctuations. Recognizing the failures of the U.S. government to manage debt and attempts to prop up the economy by printing more money, the euro is increasingly seen as safer for investment funds.