Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 11 February 2013 [View all]Demeter
(85,373 posts)AND A PONY. GOES WITHOUT SAYING
http://uk.reuters.com/article/2013/02/09/uk-europe-currency-rehn-idUKBRE91803A20130209
The European Union's top monetary official wants closer coordination on currencies to avoid potentially damaging disruptions to world trade, he told an Austrian magazine. The remarks by Economic and Monetary Affairs Commissioner Olli Rehn come amid a standoff between France and Germany over whether a strengthening euro needs an official European response or whether markets should be left to set exchange rates.
Germany said this week the strong euro was not a concern and signalled opposition to a French proposal for a mid-term target rate, exposing policy divisions over mainland Europe's currency between its top two economies. The European Central Bank will monitor the economic impact of a strengthening euro, ECB President Mario Draghi said on Thursday, feeding expectations the climbing currency could open the door to an interest rate cut.
"I recognise the risk of competitive devaluation. We have recently warned the government of Japan about corresponding steps towards depreciation of the yen," Rehn told Profil magazine in an interview published on Saturday.
"We need reforms in the international monetary system so as to avoid negative influences on international trade. The coordination within the G7, G20 or the IMF should therefore be improved," he added, referring to policy-setting groups of leading nations and the International Monetary Fund.
Rehn said a stronger euro would be very harmful mainly for the southern euro zone countries, while Germany, Austria, the Netherlands and Finland could handle this. "But the southern countries would have problems with their exports to other parts of the world," he said.
On other subjects, Rehn said the "horror scenario" of a euro zone collapse was gone but urged members of the currency bloc to press ahead with fiscal consolidation and structural reforms....
SURE IT HAS....THE NEW GRIMM'S FAIRY TALE