
The relevant point delivered by Mr. Hollande is that “A monetary zone must have an exchange rate policy, if not it will be subjected to an exchange rate that does not reflect the real state of the economy”. The euro area is expected to deliver another weak growth this year: around 0%, but the Euro appreciated during the last 12 months against the USD (0, 76 a year ago vs. 0, 74 this month, and a 4% rise this year).
Currency market is by definition an Over the Counter one, hence not regulated. Should the ECB factor the strength of the Euro or should it take decisions as had been taken in Japan recently, weakening the exchange rate of the yen?
The world is yet to recover from the 2008 crisis and promote exports had been taken as a first priority politic for many countries worldwide.
In the globalized world we live today the main question for Europe is if this trade promotion policy can be taken without currency intervention.
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