CURRENCY TRADING INFOR

But many other single-currency areas, including the US, display similar divergence. It should also be obvious that, in the absence of currency markets to act as a “valve” for economic and financial pressures, economic volatility may increase.

In fact, Eurozone leaders should be less worried about variations in internal growth than about clear evidence of overall economic underperformance. While growth has been reasonably stable since EMU started, per capita gross domestic product (GDP) — probably the best measure of economic success available — shows that Europe has lagged behind other regions, even when the figures are adjusted for workforce size. It is also well known that European productivity is falling behind, too, probably due to the same factors that make Europe seem dull, cautious, and lacking in ambition when compared with many of its competitors.

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