The EU debate - Part III

In 2000, when the EUR was launched, the GBP was worth EUR 1.6. So the EUR was worth about 62p. This is what I was calling the absolute value of the two currencies. The EUR was a new currency so could have been made twice as big or half as big and that is arbitrary. Since then the EUR has appreciated massively against the GBP so that it is now worth 90p. That was the general trend even before Brexit. Now I know the strength of a currency is not the only measure of economic success but its certainly one measure. And the right question to ask about whether the UK not joining the Eurozone was correct is not what has happened but what would have happened if we had joined, which is hard to tell. The German stock market for example has massively outperformed the UK one since the EUR was launched.

 

Sterling is currently undervalued against the Euro. €1.60 was always overvalued, but reflected uncertainty in the future of the new currency.

Once it became clear that the Euro was here to stay, it quickly appreciated in value. First down to €.50 -1.40, etc....

Fair value before Brexit was probably €1.30-35 ish. However, with the significant damage and shrinkage to the UK economy as a result of Brexit, a revaluation is due.

I still think €1.10 is undervalued - at the moment!....

 

What would you call the relative value of the two currencies?

 

Stop being pedantic. The only thing worth measuring is the change in relative value which is what I originally quoted. The fact the the GBP is worth more than the EUR is not relevant to anything - that just depends on an arbitrary decision made when the EUR was launched. I may have erred by using the term absolute value for that for which I apologise.

 

... an Exchange Rate

 

It's what the fat **** does to try and cover up his limited understanding of a subject. He's a moron who thinks he's intelligent. Not clever enough to have worked his way out of a garage in over 40 years though!

 

Joined this **** 288 pages in. God you guys are still writing a lot of guff .

I think Powerspurs is the only person i know who thinks we should have joined the Euro.

Would our economic experts @Tobes @Stanley @NowsufferinginSpain let me know if you agree with this?

 

I've never claimed to be an economic expert. I don't think we should have joined the euro.

Pete's an expert on everything though.

Apart from dieting.

 

The Euro is fundamentally flawed. To explain, if you have a common currency and a common monetary policy, as those members of the single currency do, you need to have some form of central fiscal control too. Which the Euro members do not have.

Essentially, they have a one size fits all interest rate policy, controlled by the ECB. With all the members running around controlling their own fiscal policies. They are all at different points in an economic cycle, and thus a central common interest rate policy is not beneficial to all. In fact, as was shown in incidences such as the Irish property bubble, it's downright damaging many times.

So, no, I would not support joining the Euro.

 

Meanwhile, the pound is going down the ****ter. And you're one of the turds who flushed.

 

Thanks nsis. I thought so as much but nice of you to explain it in a far better way than i would have

 

Shame there's still a floater called Pete still swilling around in the toilet bowl

 

Yeah and you lived virtually your entire working life having the benefit of it

Now you're sat in your Union Jack bills. deciding to shaft the economy for the next generation so you can wave your flag and avoid any further immigrants moving into that SW London ****hole you reside in.

You fat bigoted ****

 

What the actual ****

 

Yeah 'suffering' whilst being one of the top 5 economies on the planet

Too many foreigners joining the party despite them making it a bigger and better gig

The clueless Express shouting, Union Jack bill wearing ****ing cabbage

 

Brexit?

 

Bitter not.

 

The pound is now worth basically the same as a Euro. In effect we have practically joined the Euro because of Brexit.

 

It's an expression of uncertainty. But also an expression of no confidence in our decision and our economic future, the way we're headed at the moment.

 

More wonderfully encouraging Brexit news from weak and hapless May and her team of idiots!...

http://www.bloomberg.com/news/artic...s-team-for-eu-talks-with-pro-brexit-ministers

Economic suicide, this way......^^^^^^^^^^^^^^^^^^^^^^^