danlee74 Posted August 4, 2011 Share Posted August 4, 2011 Just looking at old pre-Euro exchange rates and note that there were approx: 3,000 Lira to 1 GBP 400 Drachma to 1 GBP 270 Peseta to 1 GBP, whereas there were a relatively measly: 10 Francs to 1 GBP 3.5 Guilders to 1 GBP 3.2 Marks to 1 GBP. Does this mean that the Italians, Greeks and Spanish have “form” with devaluation in their pre-Euro past and that it is very little surprise that these country’s which are struggling within the constraints of the common currency? It just seems to be that the countries which had weak currencies pre-Euro are the countries which are struggling within the post-Euro introduction. Or am I missing something (- admittedly, quite possibly!)?! Thoughts? Quote Link to comment Share on other sites More sharing options...
DabHand Posted August 4, 2011 Share Posted August 4, 2011 Just looking at old pre-Euro exchange rates and note that there were approx: 3,000 Lira to 1 GBP 400 Drachma to 1 GBP 270 Peseta to 1 GBP, whereas there were a relatively measly: 10 Francs to 1 GBP 3.5 Guilders to 1 GBP 3.2 Marks to 1 GBP. Does this mean that the Italians, Greeks and Spanish have “form” with devaluation in their pre-Euro past and that it is very little surprise that these country’s which are struggling within the constraints of the common currency? It just seems to be that the countries which had weak currencies pre-Euro are the countries which are struggling within the post-Euro introduction. Or am I missing something (- admittedly, quite possibly!)?! Thoughts? I believe that these countries carried persistently high inflation which was what enabled them to carry such high debt to GDP ratios. That's why its irrelevant that Italy's current debt level is "the same" as it was before the Euro, as it cannot at this point inflate it away as it did in the past - so it is in fact much worse off. Quote Link to comment Share on other sites More sharing options...
clockslinger Posted August 4, 2011 Share Posted August 4, 2011 If only we were in the euro. This site would no longer be required by now and there would be no votes whatsoever in the Etonians getting Eric the Morbidlyobese to make plans to concrete over the greenbelt. Quote Link to comment Share on other sites More sharing options...
tim123 Posted August 4, 2011 Share Posted August 4, 2011 Just looking at old pre-Euro exchange rates and note that there were approx: 3,000 Lira to 1 GBP 400 Drachma to 1 GBP 270 Peseta to 1 GBP, whereas there were a relatively measly: 10 Francs to 1 GBP 3.5 Guilders to 1 GBP 3.2 Marks to 1 GBP. Thoughts? In the case of the Mark and the Franc it's because they rebased their currency (i.e took a few 0s off the end) in the 50/60s whereas the Spanish and Italians didn't tim Quote Link to comment Share on other sites More sharing options...
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