FX Alpha 12 November 2013

The fairy tale of German superiority

 

The fairy tale of German superiority. Time and again Germany’s trade surplus is mentioned as the main reason behind other countries external imbalances. If the ECB would start verbal interventions to avoid the periphery being strangled by a strong euro German exporters would benefit unintended. Concerns that this would increase the cause of the periphery weakness are not justified.

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