GLOCONOMY: Will the Euro prevail?
AmigoShare
AmigoShare
GLOCONOMY: Will the Euro prevail?
GLOCONOMY: Will the Euro prevail? skip to main | skip to sidebar GLOCONOMY Your strategic insight in the global economy Friday, May 21, 2010 Will the Euro prevail? Global financial markets continue to tumble because of the weak economic situation in Greece. Many analysts fear that the financial unrest can easily affect other, mainly Southern European countries, that are supposed to have similar structural economic problems. Together, these often junk rated countries are called the PIGS- nations; Portugal, Ireland, Greece and Spain. Meanwhile, economists, politicians and civilians in the predominantly conservative Northern part of Europe are discussing a new financial system for the continent. Some nations pursue the return of their own currency. Others strive to introduce a new currency exclusively for the formerly strong monetary countries, such as Germany, The Netherlands and Finland.Reasons not to abandon the euroAlthough these initiatives may sound rational at the mome nt, and may have the potential to take away some of the turmoil at the financial markets on the short term, on the long term the disadvantages will outweigh the temporarily advantages.Transformation costsFirst of all, because of the initial transformation costs. It will take billions of euros to reset all the numbers and figures into a new currency. Complex financial IT systems, websites and intranet, accounting mechanisms, invoices and all relations with domestic as well as international stakeholders will have to be changed. This operation will take an immense amount of time, energy and money for the involved parties. It will result in a significant and long lasting loss of efficiency.Intra tradeSecondly, a split of the euro will considerably decrease in intra-European export and trade. Since the introduction of the euro, Northern European EU countries have witnessed a significant increase of their export to Southern European member states as a result of the different purch asing-parities of these two zones. Additionally, the absence! of inte rnal...
全文 | Detail, 來源 | Source--
AmigoShare (http://hala.us/)