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It might be usd time.
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We are still in post crisis term.From my point of view,usd might be the major prestigious curreny again.Although euro has more stable fundementals than usd,political circumstances and US economic dynamism favors usd.US economy management has capacity to be reflexible,European countries should act in a very bureacratic way.US replies to economic challenges are much more faster and effective than European ones.
In Greece problem,the best way to handle the situation is to raise the interest rates for government bonds or to print money in an independent central bank.However Greece is dependent on European Central bank therefore there is no question of raising rates or printing money.Therefore eventually EU should pay the cost of the members out of its own pocket.Unfortunately at the end of the day,countries like Germany,France will pay for the cost of Greek Uzo and sirtaki.
After a two-day meeting of finance ministers and central bankers from the G7 industrialized nations, European Central Bank President Jean-Claude Trichet said he was confident that Greece, which has been hit by the budget deficit crisis, would meet tough new belt-tightening targets.
Here are some other views from analysts and investors on the outcome of the G7 meeting:
"Juncker's comments suggest Europe will do something to help Greece. They have some structure in place like the European Investment Bank that can provide support. The problem in Europe is that there is not a single Treasury secretary that will coordinate that.
Will the markets be reassured by their comments? Even with supposed European help, Greece will remain Greece. It's going to continue to have a very difficult time raising revenues. It's going to have a difficult time instituting reform. The issue is not going to go away overnight."
On Trichet's comment that he is confident Greece will meet its deficit target: "I don't why he would make such a statement. I don't think anybody believes that. What Trichet has been saying is that Greece has to take these reforms seriously. And when you do these reforms, you're gaining the confidence of the people and the investors.
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| Tarih
: 2/7/2010 |
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© 2006 Mert TOKER All Rights Reserved. |
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